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HOUSE  No.  800 


REPORT 


State  Administration  and  ExpfeiDiTUEEs 


SUBMITTED   TO   THE 


HANQB 
10 1931 


GENERAL   OOUR^^ 


COMMISSION   OX    STATE   ADMINISTRATION   AND   EXPENDtfmiES 


J 


January,    1922 


S^Jb<:tKA^  (K^<.WtJ 


BOSTON 

WRIGHT  &  POTTER  PRINTING  CO.,  STATE  PRINTERS 

32  DERNE  STREET 

1922 


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BOCmENTX 

CONTENTS.  ^^- 


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PAGE 

Personnel  of  Commission  .  .  .  .  .  .  .  .  .5 

Chapter  53,  Resolves  of  1921 7 

Introduction  .  .  '        .  .  .  .  .  .  .  .  .  .9 

Summary  of  Report  .........       11 

Section  I: 

Waste  and  Duplication      .  .  .  .  .  .  .  .  .16 

Organization     ...........       17 

Departmental  Reorganization     ........       23 

Section  II: 

Budget .  .  .31 

Section  III: 

Abandonment  of  Activities  .  .  .  .  .  .  .  .34 

Curtailment  of  Activities  .  .  .  .  .  .  .  .  .      36 

Section  IV: 

Departmental  Comments  .  .  .  .  .  .  .  .  .40 

Organization  and  Management  ........       41 

Accounting  System   ..........       56 

Section  V: 

Construction  Forecasts       .  .  .  .  .  .  .  .  .61 

Section  VI : 

Personnel  Matters     ..........       63 

Changes  in  Civil  Service  Regulations  .......       66 

Section  VII: 

Centralized  Purchasing       .........       71 

Section  VIII: 

Registration  Fees      .  .  .  .  .  .  .  .  .  .75 

Charges  for  Special  Examinations        .......       77 

Fees  for  Institutional  Cases        ........       77 

Miscellaneous  Charges       .........       79 

Conclusion      ............       83 


543 


COMMISSION  ON  STATE  ADMINISTRATION  AND 
EXPENDITURES 


Of  the  Senate. 

Hon.  GARDNER  W.  PEARSON       .       .       /      .  Lowell. 

Hon.  LEONARD  F.  HARDY Huntington. 

Hon-.  CARL  C.  EMERY Newburypokt. 

Of  the  House. 

Mr.  BERNARD  EARLY,  FiceCteVwiaw.       .       .  Newton. 

Mr.  harry  C.  WOODILL Melrose. 

Mr.  JOSEPH  L.  LARSON Everett. 

Mr.  EBEN  S.  draper Hopedale. 

Mr.  JOHN  MITCHELL Springfield. 

Appointed  by  the  Governor. 

Mr.  EDWIN  S.  WEBSTER,  Chairman     .       .       .  Chestnut  Hill. 

Mr.  CHARLES  F.  WEED    ....*..  Brookline. 

Miss  MARION  CHURCHILL Arlington. 

Mr.  GEORGE   U.  CROCKER Boston. 

Mr.  ADOLPH  EHRLICH Brookline. 


Mr.  ROBERT  T.  BRADY,  Secretary. 


^[)t  Commonroealtl)  of  ifla00atl)xi0ett0 


Chapter  53,  Resolves  of  1921. 

• 

Resolve  establishing  a  Special  Commission  to  investigate  Prob- 
lems RELATING  TO   THE   ORGANIZATION,   WORK  AND   EXPENDITURES 

OF  THE  Existing  Administrative  Departments  of  the  Com- 
monwealth. 
Resolved,  That  a  special  commission  is  hereby  established,  to  consist  of 
three  members  of  the  senate  to  be  appointed  by  the  president,  five  mem- 
bers of  the  house  of  representatives  to  be  appointed  by  the  speaker  and 
five  persons  not  members  of  the  general  court  to  be  appointed  b}^  the 
governor  with  the  advice  and  consent  of  the  council.  The  commission 
shaU  choose  its  chairman,  and  shall  be  known  as  the  Commission  on  State 
Administration  and  Expenditures.  It  shall  be  the  dutj''  of  the  commission 
to  investigate  and  consider  the  administrative  organization  of  the  state 
government,  the  functions  and  duties  of  the  several  departments,  and 
the  possibihty  of  promoting  greater  efficiency  and  economy,  including: 

(1)  Whether  the  provisions  of  Article  LXVI  of  the  amendments  to  the 
•constitution  and  of  the  laws  for  the  reorganization  of  the  executive  and 
administrative  work  of  the  commonwealth  into  not  more  than  twenty 
departments  have  been  carried  out  in  letter  and  spirH,  and  what,  if  any, 
administrative  changes  should  be  made  to  promote  efficiency  and  to  pre- 
vent waste  and  duplication  of  effort  and  unnecessary  expense. 

(2)  The  method  of  administering  the  provisions  of  the  constitution  and 
the  laws  with  reference  to  the  budget,  and  whether  any  changes  are 
advisable  in  method,  procedure  or  law  governing  the  appropriation  and 
expenditure  of  public  money. 

(3)  Whether,  having  in  view  the  entire  programme  of  the  state's  under- 
takings, the  needs  of  the  state,  and  the  cost  and  relative  importance  of 
each  undertaking,  there  are  any  which  it  is  advisable  that  the  state  should 
curtail  or  wholl}^  give  up. 

(4)  Concerning  departmental  and  institutional  business  organization 
and  management,  and  the  method  of  handling  and  auditing  departmental, 
institutional  and  other  accounts  of  the  commonwealth. 

(5)  Ways  and  means  whereby  comprehensive  plans  may  be  made  in 
advance  concerning  the  needs  of  the  several  departments  for  a  series  of 
j^ears,  especially  with  respect  to  construction  of  new  buildings,  highways, 
harbor  improvements,  development  of  state  forests,  and  other  pubUc 
works. 


8  STATE  ADMINISTRATION.  [Jan. 

(6)  "V\^iether  any  chanp-es  are  desirable  in  the  number  of  positions  in 
the  services  of  the  several  departments  or  in  the  amounts  and  method  of 
classification  and  standardization  of  salaries,  including  those  established 
by  law,  having  a  view  to  economy  on  the  one  hand  and  to  the  value  of 
the  services  performed  and  to  efficiency  of  management  and  operation  on 
the  other. 

(7)  What  changes  in  the  method  of  purchasing  supplies,  disposing  of 
the  products  of  the  state's  institutions  and  disposing  of  property  not  in 
use  and  fit  for  salvage  are  desirable,  with  a  view  to  the  greatest  economy. 

(8)  The  advisability  of  taking  further  steps  toward  placing  any  of  the 
activities  of  the  state  on  a  self-supporting  basis,  through  the  charging  of 
fees  or  otherwise. 

The  commission  shall  report  its  findings,  with  such  recommendations 
and  drafts  for  such  legislation  as  it  may  deem  expedient,  to  the  next 
annual  session  of  the  general  court  by  filing  the  same  with  the  clerk  of 
the  house  of  representatives  on  or  before  the  first  Wednesday  in  January, 
nineteen  hundred  and  twenty-two.  Upon  the  filing  of  such  report,  the 
existence  of  the  commission  shall  terminate.  The  commission  shall  be 
furnished  with  rooms  in  the  state  house.  The  commission  may  give 
pubhc  hearings,  and  may  require  by  summonses  the  attendance  and  testi- 
mony of  witnesses  and  the  production  of  books  and  papers  relating  to  any 
matter  under  investigation,  and  may  administer  oaths  to  witnesses 
testifying  before  it.  Such  summonses  shall  be  issued  and  such  oaths 
administered  by  the  chairman  of  the  commission.  A  witness  who  gives 
false  testimony  or  who  fails  to  appear  when  duly  summoned  shall  be 
subject  to  the  same  penalties  to  which  a  witness  before  a  court  is  subject 
when  so  offending. 

The  commission  may  expend  such  sums  for  expenses,  travel,  clerical 
and  other  assistance  as  may  be  approved  by  the  governor  and  council, 
not  exceeding  such  sum  as  the  general  court  may  appropriate;  provided, 
that  the  members  of  the  commission  shall  not  receive  compensation 
except  for  expenses  actually  incurred  in  the  discharge  of  their  duties. 
The  commission  may  avail  itself  of  the  services  of  the  department  of  the 
supervisor  of  administration.     [Approved  May  27,  1921. 


1922.1  HOUSE  —  No.  800. 


REPORT   ON   STATE   ADMINISTRATION   AND 
EXPENDITURES. 


To  the  Honorable  the  Senate  and  House  of  Representative^  of  the  Common- 
wealth of  Massachusetts  in  General  Court  assembled.  ^ 

The  Commission  on  State  Administration  and  Expenditures, 
created  by  chapter  53  of  the  Resolves  of  1921,  which  is  here- 
with given,  has  undertaken  the  investigations  provided  for 
therein,  and  hereby  respectfully  presents  its  report. 

Chapter  53  was  approved  May  27,  1921.  The  personnel  of 
the  Commission  was  selected  about  one  month  later,  and  its 
first  meeting  was  held  on  July  7,  1921.  An  appropriation  of 
$5,000  was  made  to  carry  on  the  work  of  the  Commission. 

Pursuant  to  the  duties  assigned  to  it,  the  Commission  has 
made  studies  of  the  functions  and  activities  of  the  various 
State  departments,  has  held  numerous  meetings  at  which  State 
officials  and  others  have  appeared,  and  one  public  hearing.  It 
has  visited  various  State  institutions  and  other  undertakings, 
and  has  otherwise  assembled  as  full  information  regarding  .the 
administrative  activities  of  the  State  as  the  limited  time  at  its 
disposal  has  permitted. 

The  Commission  early  came  to  the  conclusion  that  the 
magnitude  of  the  State's  business  was  such  that  all  branches 
could  not  be  covered  in  detail  without  sacrifice  of  their  broader 
aspects  and  neglect  of  the  more  helpful  consideration  of  funda- 
mental principles  and  practices.  The  Commission,  therefore, 
with  some  regret  has  had  to  confine  its  report  largely  to  matters 
of  fundamental  importance  in  the  efficient  administration  of  the 
State's  business.  The  controlling  effort  in  its  studies  has  been 
to  adopt  a  business  point  of  view  as  far  as  is  consistent  with 
the  character  of  the  activities.  So  far  as  possible,  also,  the 
general  questions  of  administration  have  been  considered  with- 
out reference  to  the  personnel  of  the  existing  organization. 


10  STATE  ADMINISTRATION.  [Jan. 

The  Commission  is  duly  impressed  by  the  great  increase  in 
general  taxes  in  recent  years,  and  the  burden  of  such  taxes 
upon  individuals  and  industries.  The  logical  important  sources 
of  reduction  in  tax  burdens  are:  (1)  greater  efhciency  of  ad- 
ministration; (2)  curtailment  of  non-essential  activities;  and 
(3)  increased  charges  for  certain  special  activities  so  that  their 
cost  will  be  fully  met  by  the  particular  parties  benefited  instead 
of  being  partly  met  by  general  taxation.  The  Commission  has 
given  careful  attention  to  these  primary  sources  of  saving,  and 
has  reached  the  conclusion  that  material  results  can  be  ob- 
tained from  each. 

Increased  efficiency  would  follow  from  greater  co-ordination 
of  the  various  activities,  more  sustained  personal  effort,  and 
concentration  of  specialized  functions  in  expert  agencies.  Very 
few  of  the  State's  undertakings  would  under  normal  conditions 
be  considered  as  extravagant,  unwise,  or  beyond  the  usual  scope 
of  governmental  functions;  but  under  the  stress  of  existing  tax 
bm-dens,  some  can  be  abandoned  without  serious  sacrifice  and 
with  appreciable  reductions  in  expenditures.  A  reduction  of 
considerable  magnitude  in  general  taxes  from  increases  in  fees 
or  other  charges  for  special  services  can  be  made  if  the  State 
will  adhere  more  fully  to  a  policy  of  self-support  for  the  activi- 
ties involved.  The  recommendations  contained  herein  for  in- 
creased fees  or  other  charges  are  solely  for  the  purposes  of 
equalization  through  which  general  taxes  may  be  reduced,  and 
not  for  providing  additional  revenue  for  new  or  enlarged  activi- 
ties. 

Public  comment  has  been  made  to  the  effect  that  the  cost  of 
State  administration  has  substantially  increased  since  the  de- 
partmental reorganization  in  1919,  intimating  that  this  reorgani- 
zation has  failed  to  accomplish  its  intended  purpose.  It  should 
be  recalled  that  prices  and  the  costs  of  carrying  on  all  business 
have  increased  very  much  since  the  reorganization  date.  The 
cost  of  conducting  the  State's  business,  excluding  war  bonuses 
and  other  new  functions,  has  not  increased  as  much  as  have  the 
costs  of  other  enterprises,  and  the  Commission  finds  no  basis  for 
an  opinion  that  the  administrative  reorganization  of  1919  has 
not  been  beneficial. 

In  preparing  its  report  the  Commission  has  had  particularly 
in  mind  the  eight  lines  of  investigation  to  which  its  attention 


1922.]  HOUSE  —  No.  800.  11 

has  been  specifically  directed  by  the  terms  of  chapter  53,  under 
which  it  was  created.  Its  general  conclusions  and  recommenda- 
tions are  accordingly  grouped  into  the  eight  following  sections 
corresponding  to  the  sections  of  the  resolve. 

Some  of  the  recommendations  contained  herein  require  new 
legislation  or  changes  in  existing  laws.  An  Appendix  to  be  filed 
later  will  contain  the  drafts  of  certain  acts  necessary  to  make 
effective  the  more  important  recommendations. 

As  the  various  significant  conclusions  and  recommendations 
of  the  Commission  are  necessarily  distributed  throughout  the 
body  of  this  report,  a  brief  summary  thereof  is  here  inserted 
for  ready  reference. 

Summary. 
I.     Findings  of  the  Commission. 

1.  That  a  reduction  of  approximately  $10,000,000  per  year  in 
general  State  taxation  can  be  made  if  the  recommendations 
herein  contained  are  put  into  full  effect,  a  material  part  result- 
ing from  consolidations,  abandonment  of  activities,  and  in- 
creased efficiency;  the  balance  from  assessing  costs  of  special 
activities  upon  the  beneficiaries. 

2.  That  increases  in  administrative  expenditures  since  1919 
have  not  been  due  to  departmental  reorganization.  If  these 
increases  had  kept  pace  with  general  living  and  industrial  costs, 
they  would  have  been  more  than  double  the  actual  amount. 

3.  That  State  departments  are  functioning  in  conformity 
with  the  reorganization  act  of  1919,  but  not  in  full  accord  with 
the  intent  of  Constitutional  Amendment  LXVI,  in  that  certain 
departments,  having  no  single  head,  do  not  act  as  coherent 
units. 

4.  That  the  present  executive  budget  system  is  satisfactory, 
if  modified  to  conform  to  modern  accounting  methods  and  to 
permit  limited  expansion  of  productive  activities  beyond  budget 
limits  if  offsetting  revenue  is  thereby  assured. 

II.     Recommendations  of  the  Commission. 
1.  That  further  consolidations  of  State   activities  be  made 
into  nine  major  administrative  departments,  four  others  under 
constitutional  officers,  two  others  with  limited  duties,  and  four 


12  STATE  ADMINISTRATION.  [Jan. 

executive  activities,  —  a  total  for  all  activities  of  nineteen  in- 
stead of  the  present  thirty. 

2.  That  the  heads  of  the  nine  major  departments  constitute 
an  Administrative  Cabinet,  with  the  Governor  as  chairman. 
The  purpose  of  this,  the  Commission's  most  important  recom- 
mendation, is  to  effect  co-ordination  in  place  of  isolation  of  de- 
partments, to  encourage  discussion  of  common  interests  and 
policies,  and  to  continue  the  work  for  which  this  Commission 
was  appointed,  —  of  determining  ways  and  means  of  conducting 
the  State's  business  with  maximum  economy  and  efficiency. 

3.  That  the  departmental  consolidations  include  the  follow- 
ing:— 

(a)  A  Department  of  Administration  and  Finance,  to  include  the 
Supervisor's  functions,  a  purchasing  bureau,  an  accounting  bureau  under 
a  Comptroller,,  and  a  division  of  personnel  and  standardization. 

(b)  A  new  Welfare  Department,  to  include  present  departments  of 
Mental  Diseases,  Correction,  Welfare,  and  health  sanatoria. 

(c)  A  Department  of  Corporate  Activities,  to  include  present  depart- 
ments of  Corporations  and  Taxation,  Banking  and  Insurance,  and  Public 
'Utilities. 

(d)  Other  smaller  consolidations  and  transfers  of  activities. 

4.  That  the  present  obsolete  accounting  system  be  replaced 
by  a  standard  system  based  on  commitments  rather  than  cash 
transactions,  the  new  system  to  be  designed  and  administered 
by  the  Comptroller,  the  Auditor  to  do  auditing  only  in  the 
future,  and  the  Treasurer  to  do  only  cash  and  fund  accounting. 

5.  That  civil  service  regulations  be  changed  to  curtail  exist- 
ing exemptions,  to  provide  for  non-competitive  examinations  in 
certain  special  cases,  and  to  transfer  appeals  from  discharge 
from  the  courts  to  a  board  of  review. 

6.  That  a  central  purchasing  agency  be  established  to  take 
responsibility  for  all  State  purchasing,  to  standardize  depart- 
mental requirements,  and  to  make  blanket  purchases  where 
practicable. 

7.  That  fees  and  other  charges  for  activities  and  facilities  of 
special  rather  than  general  benefit  be  increased,  so  far  as  possible, 
to  cover  the  full  cost  of  the  service.  Included  therewith  is  a 
revision  of  motor-vehicle  fees  and  a  tax  of  two  cents  per  gallon 
upon  gasoline  or  other  fuel. 


1922.1  HOUSE  —  No.  800.  13 


SECTION  I. 

The  first  group  of  matters  to  which  the  attention  of  the 
Commission  was  directed  is  as  follows:  — 

(a)  Whether  the  provisions  of  Article  LXVI  of  the  Amendments  to 
the  Constitution  and  of  the  laws,  for  the  reorganization  of  the  executive 
and  administrative  work  of  the  Commonwealth  into  not  more  than  twenty 
departments,  have  been  carried  out  in  letter  and  spirit. 

(6)  "V\niat,  if  any,  administrative  changes  should  be  made  to  promote 
efficiency  and  to  prevent  waste  and  duplication  of  effort  and  unnecessary 
expense. 

Commenting  first  upon  paragraph  (a)  of  the  above,  the 
Commission  finds  that  the  several  administrative  departments 
of  the  Commonwealth  are  functioning  substantially  in  accord- 
ance with  the  provisions  of  chapter  350  of  the  General  Acts  of 
1919,  under  which  the  activities  of  the  State  were  reorganized. 
The  Commission  is  not  convinced  that  the  reorganization  is  in 
accordance  with  the  spirit  of  Article  LXVI.  This  amendment 
requires  that  every  administrative  office,  board,  and  commis- 
sion, except  those  officers  serving  directly  under  the  Governor 
and  Council,  shall  be  placed  within  not  more  than  twenty  de- 
partments to  be  designated  by  the  General  Court.  It  was  pre- 
sumably the  intent  of  the  Constitutional  Convention,  which 
drafted  the  amendment  in  question,  that  when  an  activity  was 
"placed"  within  a  department  it  should  become  an  integral 
part  of  an  administrative  unit  having  a  responsible  head  and 
functioning  under  his  direction. 

In  certain  respects  chapter  350  does  not  fully  carry  out  such 
an  interpretation  of  the  constitutional  amendment.  Sections 
45  to  50,  inclusive,  of  this  chapter  provide  for  the  establishment 
of  the  Department  of  Banking  and  Insurance,  organized  into 
three  divisions,  as  follows:  (1)  Banks  and  Loan  Agencies,  (2) 
Insurance,  (3)  Savings  Bank  Life  Insurance.  Each  division  is 
in  charge  of  a  commissioner,  responsible  for  the  activities  of  the 
division,  but  no  one  of  these  commissioners,  or  any  other 
officer,  is  responsible  for  the  department  as  a  whole.  Under  the 
above  conditions  these  three  divisions  of  the  department  have 
functioned  substantially  as  separate  and  distinct  departments. 


14  STATE  ADMINISTRATION.  [Jan. 

Sections  63  to  67,  inclusive,  of  chapter  350  provide  for  the 
creation  of  a  Department  of  Civil  Service  and  Registration, 
organized  into  two  divisions  of  Civil  Service  and  Registration, 
respectively.  Each  division,  as  in  the  case  of  the  Department 
of  Banking  and  Insurance,  has  an  officer  responsible  for  the 
activities  of  the  division,  but  neither  responsible  to  the  other, 
and  therefore  with  no  head  to  the  department. 

The  sections  of  the  act  under  which  the  above  two  depart- 
ments were  created  both  provide  that  the  commissioners  in 
charge  of  the  several  divisions  shall  act  as  a  board  in  all 
matters  affecting  the  department  as  a  whole,  but  such  matters 
have  so  far  been  negligible  in  the  activities  of  these  depart- 
ments. 

Sections  123  to  129,  inclusive,  of  chapter  350  provide  for  the 
consolidation  of  existing  metropolitan  district  activities  under 
a  new  Metropolitan  District  Commission.  This  commission  is 
in  charge  of  a  commissioner  and  four  associate  commissioners, 
all  appointed  by  the  Governor,  the  commissioner  being  desig- 
nated as  the  executive  and  administrative  head  of  the  commis- 
sion, with  authority  to  determine  the  subdivisions  of  the  com- 
mission's activities  and  to  appoint  and  remove  a  director  in 
charge  of  each.  Other  employees  of  the  commission,  including 
the  secretary,  engineers,  purchasing  agent,  inspectors,  police 
force,  clerks,  etc.,  are  appointed  by  the  commission  as  a  whole. 
Other  functions  of  the  associate  commissioners  are  not  clearly 
defined,  and  their  compensation  is  not  sufficient  to  insure  their 
full  service.  For  the  above  or  other  reasons  the  several  activi- 
ties which  have  been  brought  together  under  the  jurisdiction  of 
this  commission  have  apparently  not  been  administered  with  as 
complete  co-ordination  as  exists  in  other  departments  with  a 
more  definite  scheme  of  organization. 

In  some  other  departments  which  are  combinations  of  a 
number  of  previously  independent  activities  there  has  not  been 
full  co-operation  between  division  directors  (who  may,  prior  to 
the  reorganization,  have  been  heads  of  independent  divisions) 
and  the  commissioner  in  charge  of  the  new  department. 

The  natural  reason  for  such  lack  of  co-operation  as  exists  is 
the  fact  that  the  reorganization  program  contained  in  chapter 
350  left  the  appointment  of  these  now  subordinate  officials  in 


1922.]  HOUSE  —  No.  800.  15 

the  hands  of  the  Governor  and  Council.  It  is  generalh^  ac- 
knowledged that  maximum  administrative  efficiency  can  be 
obtained  only  through  direct  responsibility  of  all  officials  and 
employees  to  their  immediate  superiors,  and  that  authority  over 
subordinates  is  effective  largely  through  power  of  appointment 
and  removal.  It  follows  that,  fully  to  accomplish  the  purpose 
of  Constitutional  Amendment  LXVI,  and  to  promote  co-opera- 
tion and  efficiency,  authority  to  appoint  and  remove  depart- 
mental subordinates  (subject  to  approval  of  the  Governor  and 
Council)  should  be  lodged  in  the  department  heads,  except 
where  advisory  or  quasi-judicial  functions  are  involved.  The 
Commission  is  of  the  opinion  that  if  chapter  350  had  lodged 
full  administrative  authority  in  single  department  heads,  the 
departmental  activities  would  have  functioned  with  materially 
greater  smoothness  and  efficiency. 

As  far  as  the  remaining  departments  are  concerned,  the  Com- 
mission has  found  no  noteworthy  evidences  of  failure  to  observe 
the  provisions  of  both  the  constitutional  amendment  and  the 
legislative  acts  under  which  they  are  functioning  other  than 
are  involved  in  the  appointment  policy  referred  to  above. 
Certain  minor  activities  were  not  assigned  by  chapter  350  to 
any  of  the  newly  organized  administrative  departments,  but 
were  placed  in  the  Executive  Department  under  the  direct 
supervision  of  the  Governor.  In  most  cases  these  activities  are 
not  of  an  executive  nature,  and  should  be  attached  to  appro- 
priate administrative  departments. 

The  Commission  is  not  unmindful  of  the  difficult  task  con- 
fronting the  General  Court  of  1919  in  carrying  out  the  require- 
ments of  Article  LXVI  of  the  constitutional  amendments.  The 
reorganization  of  more  than  one  hundred  independent  depart- 
ments, commissions,  boards,  and  other  agencies  having  State* 
wide  activities  into  twenty  co-ordinated  departments  was  a 
formidable  problem,  and  the  Commission  is  not  disposed  to  be 
critical  of  the  results  so  far  accomplished.  On  the  contrary, 
these  results  reflect  the  wisdom  of  the  General  Court  in  pre- 
scribing a  reorganization  which,  while  comprehensive,  was  not 
so  drastic  as  to  cause  excessive  temporary  confusion. 


16  STATE  ADMINISTRATION.  [Jan. 

('    >  Waste  and  Duplication. 

^  iWith  regard  to  that  portion  of  paragraph  (6)  of  this  section 
referring  to  changes  "to  prevent  waste  and  duplication  of 
"1  effort  and  unnecessary  expense,"  the  Commission  has  found, 
in  its  studies  of  the  activities  carried  on  by  the  various  depart- 
ments, that  in  a  number  of  cases  similar  activities  are  inde- 
pendently carried  on  in  different  departments,  some  of  them 
involving  duplication  of  work.  There  are  also  cases  of  wholly 
unrelated  activities  combined  within  one  department. 

Separation   of   similar   activities   into    different   departments 

ma^'-  be  illustrated  by  the  disposition  of  licensing  or  registration 

V     functions   which,   for   professional   and   other   occupations,   are 

handled  in  four  separate  departments.     It  would  appear  that 

;,  ^  most,  if  not  all,  of  the  sixteen  or  more  occupations  and  pro- 

I  ■  fessions  requiring  State  licenses  could  be  handled  more  efficiently 

by  one  department. 

Illustrations  of  overlapping  or  duplication  of  activities  which 
^'    have   come   to  the   attention  of  the   Commission  include   the 
.  following:  — 

The  construction  and  maintenance  of  highways  and  bridges  is 
divided  between  two  State  departments,,  supplementing  the 
work  of  this  character  done  by  cities,  towns  and  counties. 

Forestry  and  pest  control  activities  are  carried  on  by  four 
different  departments  and'in  two  separate  divisions  of  two  of 
these  departments. 

Police  functions  are  performed  by  five  different  agencies. 
Engineering  in  connection  with  construction  work  is  carried 
on  by  at  least  three  departments,  and  in  three  separate  divisions 
of  one  of  these  departments. 

Rainfall  records  are  kept  by  two  State  departments,  in  addi- 
tion to  those  compiled  throughout  the  country  by  the  Federal 
government. 

Americanization  activities  are  carried  on  by  two  departments, 
including  three  divisions  of  one  of  these  departments. 

Inspections  of  new  buildings  and  their  appurtenances  are 
made  by  three  different  departments. 

Food  is  inspected  by  two  departments,  and  there  is  over- 
lapping in  other  miscellaneous  inspection  work. 


1922.]  HOUSE  —  No.  800.  17 

There  is  also  overlapping  or  duplication  of  statistical  worl^ 
done  by  various  departments,  either  between  the  departments 
themselves  or  between  the  departments  and  the  Federal  gov- 
ernment. 

All  departments  whose  activities  are  located  outside  the 
State  House  carry  on  their  necessary  purchasing  independently,, 
and  State  House  purchasing  is  divided  between  two  depart- 
ments. 

The  above  enumeration  does  not  include  all  the  matters  of 
this  character  that  have  come  to  the  attention  of  the  Commis- 
sion, but  they  are  sufficient  to  illustrate  the  possibilities  of 
saving  in  administrative  costs  through  more  logical  rearrange- 
ments. The  specific  recommendations  which  the  Commission 
makes  to  bring  about  better  co-ordination  are  set  forth  in  de- 
tail in  Section  IV  cf  this  report,  which  deals  more  specifically 
wdth  departmental  activities. 


Organization. 
With  reference  to  that  portion  of  paragraph  (6)  of  this  sec- 
tion which  deals  with  "the  administrative  changes  which  should 
be  made  to  promote  efficiency,"  the  Commission  is  of  the 
opinion  that  there  are  advantages  in  a  further  consolidation  of 
existing  activities  into  a  smaller  number  of  administrative  de- 
partments. Attention  is  directed  to  the  fact  that  the  present 
number  of  departments  is  the  maximum  permissible  under  the 
recently  amended  Constitution,  with  a  considerable  number  of 
detached  activities  assigned  to  the  Executive  Department.  It 
will  be  recalled  that  the  committee  on  administrative  reorgani- 
zation of  the  recent  Constitutional  Convention  recommended 
that  all  the  administrative  activities  of  the  State  be  combined 
into  not  less  than  seven  nor  more  than  fifteen  departments,  and 
the  proceedings  of  the  convention  indicate  that  the  committee 
favored  an  approach  to  the  lower  rather  than  the  higher  limit. 
With  due  appreciation  of  the  practical  difficulties  attending  any 
consolidation  of  administrative  activities,  the  Commission  feels 
that  the  success  with  which  the  greatly  reduced  number  of  de- 
partments has  functioned  during  the  past  two  years  suggests 
the  serious  consideration  of  further  consolidations. 


18  STATE  ADMINISTRATION.  [Jan. 

The  Commonwealth  has  endorsed  the  policy  of  adminis- 
trative responsibility  vested  in  the  Governor,  and,  through  him, 
in  department  heads,  who,  with  few  exceptions,  are  appointed 
and  may  be  removed  by  him,  subject  to  approval  of  the  Council. 
Real  responsibility  of  this  kind  requires  that  the  Governor 
should  have  immediateh^  responsible  to  him  only  such  number 
of  department  heads  as  will  permit  the  necessary  intimate  con- 
tact. In  the  most  successfully  conducted  private  businesses  the 
number  of  subordinates  immediately  responsible  to  the  execu- 
tive is  rarely  much  greater  than  the  minimum  of  seven,  sug- 
gested by  the  Constitutional  Convention  committee. 

It  may  be  impracticable  at  this  time  fully  to  carry  out  such 
an  extensive  further  reduction  in  number  of  departments,  but 
it  is  apparent  that  a  substantial  step  in  that  direction  should  be 
taken  without  delay.  The  Commission  is  not  unmindful  of  the 
objection  which  is  frequently  raised  to  concentration  of  au- 
thority and  responsibility  in  the  hands  of  single  government 
officials  whose  compensation  is  usually  less  than  that  obtainable 
from  private  employment,  thus  making  equal  ability  available, 
if  at  all,  only  through  personal  sacrifice.  While  there  is  risk  in 
lodging  responsibility  in  positions  which  may  be  filled  by  un- 
qualified agents,  experience  has  shown  that  executives  exercise 
special  care  in  appointments  to  positions  involving  large  re- 
sponsibilities. Failure  to  do  so  would  seriously  reflect  upon 
their  own  fitness  for  office.  If  the  changes  recommended  herein 
with  respect  to  salaries,  method  of  appointment,  and  tenure  of 
office  are  adopted,  the  advantages  of  further  consolidations  of 
departments  will  be  measurably  increased. 

The  Commission  accordingly  recommends  a  reorganization  of 
the  existing  twenty  administrative  and  ten  executive  depart- 
ments into  fifteen  administrative  and  four  executive  depart- 
ments. Of  the  fifteen  new  administrative  departments  nine 
only  are  to  be  charged  with  broad  and  comprehensive  functions, 
four  have  special  duties  in  charge  of  constitutional  officers,  and 
two  are  also  limited  as  to  their  scope  or  field  of  activity.  It 
will  be  noted  that  the  total  number  of  administrative  depart- 
ments is  within  the  upper  limit  fixed  by  the  committee  on  re- 
organization of  the  Constitutional  Convention,  and  that  the 
number  of  large  and  broadly  active  departments  is  not  far  above 
the  minimum  limit  fixed  by  that  committee. 


1922.1  HOUSE  —  No.  800.  19 


Administrative  Cabinet. 

The  Commission  recommends  that  the  heads  of  the  nine 
large  administrative  departments  constitute,  with  the  Governor, 
an  Administrative  Cabinet.  It  considers  this  to  be  the  most 
important  and  far-reaching  of  alj  its  recommendations.  One  of 
the  s^ious  and  inevitable  defects  in  the  present  scheme  of 
organization  is  the  tendency  of  each  department  to  magnify  its 
own  problems  and  importance,  continually  to  expand  its  activi- 
ties, and  to  work  for  and  expend  as  large  appropriations  as  it 
can  obtain  in  competition  with  other  departments.  There  are 
few  incentives  to  real  economy  and  no  established  avenues  of 
mutual  interest  and  co-operation. 

The  proposed  cabinet  is  designed  to  remedy  this  fundamental 
defect.  Through  such  a  cabinet  the  Governor  would  be  brought 
into  more  intimate  contact  with  the  administrative  problems  of 
the  departments;  and  the  heads  of  the  departments  would  at 
the  same  time  learn  of  each  other's  problems,  would  have  the 
opportunity  to  adopt  common  administrative  policies,  and 
maintain  co-operative  relations  rather  than  the  present  spirit  of 
isolation.  x 

It  should  be  the  first  duty,  and  also  a  continuing  duty,  of 
the  cabinet  to  consider  the  most  economical  and  efficient  ways 
of  conducting  the  State's  business,  to  discuss  common  or  related 
activities  in  the  several  departments,  and  to  develop  ways  and 
means  whereby  the  administrative  organization  can  be  made 
more  simple  and  coherent.  In  a  number  of  places  throughout 
this  report  the  Commission  has  recommended  investigations, 
reports,  and  readjustments  of  existing  practices.  Such  of  these 
as  involve  single  departments  or  unimportant  matters  might  be 
settled  by  the^  head  of  the  department,  with  the  advice  and 
consent  of  the  Governor.  Other  matters  more  important  or 
involving  more  than  one  department,  but  not  of  such  a  nature 
as  to  require  legislative  action,  might  properly  be  referred  to  the 
cabinet  for  consideration  and  decision. 

It  is  recommended  that  the  commissioner  in  charge  of  the 
proposed  new  Department  of  Administration  and  Finance  be 
made  the  vice-chairman  of  the  cabinet,  to  preside  in  the  absence 
of  the   Governor.     Stated  meetings  of  the  cabinet  should  be 


20  STATE  ADMINISTRATION.  [Jan. 

held  at  least  once  each  month,  and  special  meetings  should  be 
held  at  any  time  upon  the  call  of  the  Governor  or  the  idce- 
chairman,  or  at  the  request  of  a.  majority  of  the  cabinet  mem- 
bers. 

Organization  Principles. 
In  connection  with  the  proposed  changes  in  administrative 
organization,  it  has  been  found  necessary  to  employ  with  con- 
sistency a  wider  range  of  terms  to  designate  the  increased  range 
of  functions  to  be  brought  together  in  one  department.  Start- 
ing with  the  term  "department,''  which  is  fixed  by  the  Consti- 
tution, the  word  "bureau"  is  applied  to  the  major  grouping  of 
departmental  activities,  usually  in  charge  of  an  associate  com- 
missioner; the  groups  within  a  bureau  are  called  "divisions," 
usually  in  charge  of  directors,  as  at  present;  the  activities  next 
lower  in  the  scale  are  called  "subdivisions."  This  nomenclature 
is  used  herein  with  reference  to  the  new  organization  plan,  and 
is  recommended  for  general  use  because  it  seems  to  involve  the 
least  confusion  of  titles  and  duties.  The  Commission  also 
recommends  certain  fundamental  regulations  with  respect  to 
appointment,  tenure,  and  service,  and  certain  other  standard 
methods  and  practices,  as  follows:  — 

1.  All  commissioners  in  charge  of  administrative  departments 
should  be  appointed  by  the  Governor,  with  the  advice  and  con- 
sent of  the  Council,  and  those  who  are  members  of  the  Ad- 
ministrative Cabinet  should  have  a  term  of  office  terminating 
with  that  of  the  Governor,  but  should  continue  in  office  until 
their  successors  have  been  appointed. 

2.  Commissioners  who  are  not  cabinet  members,  associate 
commissioners,  and  members  of  the  quasi-judicial  and  advisory 
boards  should  be  appointed  by  the  Governor,  with  the  advice 
and  consent  of  the  Council,  and  should  in  general  retain  the 
tenures  of  office  now  provided  by  law. 

3.  Directors  or  otherwise  entitled  officials  in  charge  of 
divisions  in  administrative  departments  should  be  appointed, 
without  limitation  to  their '  tenures  of  office,  by  the  associate 
commissioner  in  charge  of  the  bureau  in  which  the  division  is 
located,  confirmed  by  the  commissioner  in  charge  of  the  de- 
partment, and  approved  by  the  Governor  and  Council. 


1922.]  HOUSE  —  No.  800.  21 

4.  A  department  having  extensive  and  complex  adminis- 
trative duties  should  have  a  commissioner  in  charge  "without 
portfolio,"  having  under  him  associate  commissioners  respon- 
sible for  tjie  several  bureaus  of  the  department. 

5.  A  department  having  comparatively  simple  administrative 
functions  may  have  at  its  head  a  commissioner  who  will  also 
have  direct  charge  of  a  bureau,  other  such  bureaus  being 
assigned  to  associate  commissioners. 

6.  Each  department  should  have  a  single  administrative  head, 
w^hether  or  not,  like  his  associate  commissioners,  he  has  direct 
charge  of  a  bureau.  He  should  be  responsible  for  the  general 
administrative  w^ork  of  the  department,  the  co-ordination  of 
clerical  and  other  activities  of  its  bureaus,  and  the  general 
conduct  of  its  work.  He  should  not,  however,  assume  responsi- 
bility for  the  official  acts  of  quasi-judicial  boards  which  may  be 
within  his  department. 

7.  Appointments  to  subordinate  positions  within  the  depart- 
ments, subject  to  civil  service  regulations  revised  as  herein  pro- 
posed, should  be  made  upon  nomination  of  the  immediate 
superior  of  the  appointee,  with  the  endorsement  of  intermediate 
superiors  and  the  final  approval  of  the  head  of  the  department. 

8.  Departments  in  charge  of  a  commissioner,  without  asso- 
ciate commissioners  in  charge  of  its  bureaus,  should  have  a 
deputy  or  other  authorized  substitute  to  perform  his  functions 
in  his  absence.  Provisions  of  this  kind  are  now  lacking  in 
certain  cases. 

9.  All  commissioners,  associate  commissioners,  directors,  and 
other  employees  of  the  administrative  departments  who  are 
paid  salaries  intended  to  be  commensurate  with  the  full  value 
of  their  services  should  devote  substantially  their  entire  time  to 
the  service  of  the  Commonwealth. 

10.  A  commissioner  in  charge  of  a  department  "withqut- 
portfolio"  should  in  general  organize  his  associate  commis- 
sioners into  an  advisory  board,  which  should  meet  frequently  to 
discuss  matters  of  common  interest.  The  actions  of  such  boards 
should  not  be  formal  except  in  the  event  that  all  associate  com- 
missioners unite  in  opposing  a  plan  or  policy  of  the  commis- 
sioner. Under  such  circumstances  the  associate  commissioners 
should  have  the  right  to  suspend  action  on  the  part  of  the  com- 


22 


STATE  ADMINISTRATION. 


[Jan. 


missioner,  and,  through  one  of  their  number,  to  present  the  case 
before  the  administrative  cabinet  for  review  and  reference  back 
to  the  commissioner  with  recommendations. 


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11.  When  serving  in  certain  designated  cases  as  adminis- 
trative (as  distinct  from  advisory)  boards,  the  commissioner  and 
associate  commissioners  should  have  equal  voice  in  the  de- 
liberations.    In  case  of  a  tie  vote  upon  any  matter,  the  board 


1922.]  HOUSE  —  No.  800.  23 

should  call  upon  the  Governor,  or,  by  agreement,  upon  a  com- 
missioner or  associate  commissioner  from  another  department, 
to  decide  the  matter  at  issue. 

12.  It' appears  to  the  Commission  that  some  of  the  advisory 
boards  and  boards  of  trustees  of  institutions  are  so  large  as  to 
be  unwieldy  and  inefficient.  Certain  of  these  boards  contain 
as  many  as  eighteen  members.  It  is  recommended  that,  by 
failure  to  fill  vacancies,  the  membership  of  these  boards  be  re- 
duced gradually  to  seven.  , 

The  above  statement  of  principles  will  serve  to  assist  in  the 
understanding  of  the  details  of  the  proposed  administrative  re- 
organization which  are  set  forth  in  an  accompanying  diagram. 
The  heads  of  the  nine  heavily  outlined  departments  at  the 
bottom  of  this  diagram  constitute  the  members  of  the  Adminis- 
trative Cabinet.  The  following  pages  contain  brief  descriptions 
of  the  functions  and  scope  of  the  reorganized  departments. 
These  descriptions  are  accompanied  by  charts  showing  the  im- 
portant new  functions  and  lines  of  responsibility.  It  has  not 
been  the  intention  of  the  Commission  to  include  in  its  de- 
scriptions or  charts  details  of  the  subsidiary  functions  or 
organization  of  the  new  departments.  The  most  efficient 
arrangement  and  functioning  of  the  subsidiary  activities  are 
matters  requiring  extended  study  and  knowledge  of  the  par- 
ticular activities.  It  has  therefore  been  assumed  that  these 
activities  would  continue  to  function  at  the  beginning  of  the 
reorganization  substantially  as  at  present  unless  otherwise  indi- 
cated, and  the  Commission  recommends  that  the  heads  of  all 
new  departments  make  a  careful  study  of  the  initial  functioning 
of  their  organizations,  and  if,  or  as  soon  as,  need  of  changes  is 
apparent,  report  to  that  effect,  with  recommendations  to  the 
Governor  for  attention  of  the  Administrative  Cabinet. 

Departmental  Reorganization. 
Administration  and  Finance. 
The  central  feature  of  the  new  organization  is  the  establish- 
ment of  a  Department  of  Administration  and  Finance,  to  take 
the  place  of  the  present  executive  division  in  charge  of  the 
Supervisor  of  Administration.     The  new  department,  in  charge 


24  STATE  ADMINISTRATION.  [Jan. 

of  a  commissioner,  would  assume  the  various  functions  now  per- 
formed under  the  Supervisor  of  Administration,  and  provision 
is  made  for  expanding  and  intensifying  the  work  now  per- 
formed. 

In  addition  to  these  duties,  this  department  would  contain 
two  new  activities,  —  the  purchasing  agent  recommended  in 
Section  VII,  with  the  duties  therein  defined,  who  would  be  an 
associate  commissioner;  the  Comptroller  recommended  in  Sec- 
tion IV,  vrith  ,the  duties  therein  defined,  who  would  also  be  an 
associate  commissioner;  and  it  is  proposed  to  have  a  third 
associate  commissioner  primarily  in  charge  of  the  budget  activi- 
ties now  handled  by  the  Supervisor  of  Administration. 

In  addition  to  these  three  associates,  it  is  proposed  to  place 
under  the  commissioner  a  director  or  other  administrative 
agency,  who  should  be  qualified  to  carry  on  a  wide  range  of 
departmental  research  tending  to  greater  co-ordination  and 
standardization  of  administrative  activities.  This  division  might 
properly  contain  technical  advisers,  who  would  assist  the  budget 
commissioner  in  solving  engineering  problems,  and  would  also 
undertake  engineering  investigations  in  behalf  of  departments 
not  organized  to  do  such  work  for  themselves.  It  is  the  con- 
viction of  the  Commission  that  there  are  Avide  opportunities  for 
improvements  in  efficiency  of  the  departments,  such  as  power 
plant  and  other  technical  operations,  co-ordination  of  engineer- 
ing and  laboratory  functions,  etc.,  Avhich  would  yield  substantial 
financial  results.  With  carefully  selected  personnel  and  proper 
encouragement  and  co-operation  from  other  departments,  the 
achievements  of  this  proposed  new  activity  might  early  reach 
proportions  which  would  justify  the  title  and  compensation  of 
associate  commissioner  at  its  head. 

It  is  proposed  to  transfer  to  this  department  the  responsi- 
bility for  the  State  House,  which  duty  is  now  lodged  in  the 
Superintendent  of  Buildings.  The  purchasing  and  store-room 
duties  of  this  office  would  be  assumed  by  the  new  purchasing 
bureau.  The  care  and  maintenance  of  the  State  House  building 
and  grounds  should  be  in  the  hands  of  a  custodian  reporting  to 
the  commissioner  or  to  the  director  of  personnel  and  standardi- 
zation, as  the  former  may  elect.  Such  jurisdiction  as  the  Super- 
intendent of  Buildings  now  has  over  rented  quarters  of  State 


1922.]  HOUSE  —  No.  800.  25 

activities  should  be  transferred  to  this  department  and  made 
more  comprehensive.  The  assignment  of  space  in  the  State 
House  should  be  in  the  hands  of  the  commissioner  and  asso- 
ciate commissioners  of  this  department  acting  as  a  board  for 
this  purpose.  Appeal  from  a  decision  of  this  board  should  be 
had  to  the  Governor,  as  at  present. 

The  commissioner  and  associate  commissioners  should  also 
act  as  a  board  on  matters  relating  to  accounting  standards  and 
practices  (other  than  the  establishment  of  the  proposed  new 
system)  and  the  approval  of  important  contracts  negotiated  by 
the  associate  commissioner  in  charge  of  purchases. 

t 
Public  Welfare. 

Under  the  above  title  the  Commission  recommends  the  con- 
solidation of  the  Departments  of  Correction,  Mental  Diseases, 
the  present  Department  of  Public  Welfare,  and  the  institutional 
activities  of  the  Department  of  Public  Health.  The  remaining 
activities  of  the  Public  Health  Department,  including  its  miscel- 
laneous inspection  and  educational  work  and  engineering  of 
water  supplies  and  sewerage  systems,  are  not  disturbed,  and 
are  left  in  a  separate  department  retaining  the  present  title. 

It  is  proposed  to  place  the  full  administrative  responsibility 
of  the  new  welfare  department  in  the  hands  of  a  commissioner, 
who  should  be  a  man  of  unquestioned  executive  ability  and 
broad  business  experience.  Under  him  should  be  associate  com- 
missioners in  charge  of  the  following  groups  of  activities: 
Mental  diseases,  correction,  hospitals  and  schools,  aid  and  re- 
lief. These  associate  commissioners  should  all  be  competent 
professional  men,  familiar  with  the  duties  of  their  respective 
divisions,  and  with  full  .authority  in  matters  relating  to  treat- 
ment and  welfare  of  inmates,  but  relieved  of  the  business  and 
mechanical  details  of  operation,  so  that  their  time  may  be  de- 
voted primarily  to  medical  or  corrective  treatment  and  other 
professional  functions  of  their  respective  institutions. 

It  is  proposed  to  include  in  the  department,  directly  re- 
sponsible to  the  commissioner,  a  director  of  business  affairs, 
who  would  supervise  all  business  details  and  financial  matters 
incident  to  the  operation  of  the  various  institutions,  and  direct 
the  maintenance  and  construction  of  institutional  equipment, 


26  ^  STATE  ADMINISTRATION.  [Jan. 

buildings,  and  grounds.  Under  him  should  be  such  purchasing 
or  supply  requisition  clerks  as  are  needed  to  function  in  con- 
nection with  the  central  purchasing  agency  in  the  procuring  o? 
necessary  supplies  for  the  institutions.  There  should  also  be 
under  this  director  a  subdivision  of  technical  assistants,  who 
would  supervise  the  operation  of  power  plants  and  other  me- 
chanical equipment  of  the  institutions  to  insure  sustained  maxi- 
mum efficiency. 

Directly  responsible  to  the  associate  commissioners  in  charge 
of  the  various  groups  of  institutions  should  be  the  staff  activities 
and  the  superintendents  of  the  various  institutions.  It  is  not 
proposed  that  the  director  of  business  activities  should  interfere 
with  the  responsibility  of  the  superintendents  over  the  operation 
of  their  respective  institutions,  but  rather  that  the  director 
should  serve  in  an  advisory  capacity  to  the  associate  commis- 
sioners and  the  various  superintendents,  relieving  them  of  re- 
sponsibility for  details  foreign  to  their  professional  duties.  Such 
interlocking  activities  might  suggest  possibilities  of  friction,  but 
they  exist  in  all  large  business  organizations  and  work  har- 
moniously. If  the  recommendations  of  the  director  are  not  ac- 
cepted by  the  superintendent  of  an ,  institution  or  his  subordi- 
nates, the  matter  should  be  referred  to  the  associate  commis- 
sioner, or,  if  necessary,  to  the  commissioner  for  final  settlement; 
but  it  is  not  anticipated  that  such  reference  will  be  necessary 
except  under  unusual  conditions.  It  is  recommended  that  the 
commissioner  be  given  authority  to/  determine  and  adjust  the 
many  details  of  responsibilities  and  activities  of  the  other  divi- 
sions, to  the  end  that  the  entire  subsidiary  organization  may 
work  together  harmoniously  and  efficiently.  An  accompanying 
diagram  shows  the  general  organization  of  the  department  as 
outlined  above,  and  a  subsidiary  diagram  sets  up  in  iurther  de- 
tail a  proposed  organization  with  personnel  of  the  division  of 
business  activities.  The  organization  of  the  other  divisions, 
except  as  otherwise  set  forth  in  the  above  general  description, 
will  remain  substantially  as  at  present. 

In  creating  a  new  administrative  head  for  this  group  of  insti- 
tutions, and  adding  a  new  division  for  handling  its  business 
affairs,  the  Commission  is  not  unmindful'  of  the  expense  im- 
mediately involved,  but  finds  that  present  departmental  organi- 


1922.]  HOUSE  —  No.  800.  '  27 

zation  and  other  costs  can  be  reduced  more  than  enough  to  off- 
set this  expense,  leaving  the  saving  in  operating  cost  effected 
through    the    consoHdation,    estimated    at   $887,500,    as   a   net  \ 
saving. 

Corporate  Activities, 

Three  entirely  separate  departments  now  have  charge  of  the 
regulation  of  the  affairs  of  corporations  doing  business  within 
the  Commonwealth.  These  three  departments  are  Corporations 
and  Taxation,  Banking  and  Insurance,  and  Pubhc  Utilities.  It 
is  proposed  to  combine  all  these  kindred  activities  into  a  new 
department  with  the  above  title.  At  the  head  of  this  depart- 
ment should  be  a  coxtimissionerj^in  charge  of  the  general  adminis- 
trative work  of  the  department,  having  full  responsibility  for  its 
successful  and  efficient  functioning,  with  the  exception  of  the 
work  of  any  quasi-judicial  boards  which  are  included  within  the 
departments  to  be  combined.  The  decisions  of  such  boards 
should  not  be  subject  to  review  by  the  commissioner.  The  com- 
missioner should  have  under  his  supervision,  as  far  as  practi^ 
cable,  the  clerical,  stenographic,  and  filing  activities  of  the  en- 
tire department  for  the  purpose  of  co-ordinating  all  such  work 
in  the  hands  of  the  smallest  practicable  number  of  persons. 

Under  the  commissioner  should  be'  four  associate  commis- 
sioners, in  charge,  respectively^  of  the  bureaus  of  Corporations 
and  Taxation,  Banks,  Insurance,  Public  Utilities. 

The  Commission  recommends  that  the  present  Division  of 
Savings  Bank  Life  Insurance  be  made  a  division  in  the  Bureau 
of  Insurance,  with  the  understanding  that  the  Bureau  of  Bank- 
ing would  co-operate  and  assist  in  any  functions  of  the  division 
involving  banking  interests.  Associated  with  the  Bureau  of 
Banking  should  be  the  Board  of  Bank  Incorporatioi>  as  now 
organized.  Associated  with  the  Bureau  of  Insurance  should  be 
the  Board  of  Appeal  on  Fire  Insurance  Rates  as  now  organized. 
The  Bureau  of  Corporations  and  Taxation  should  have  divi^ons 
handling  the  following  activities:  Corporations,  income  taxes, 
inheritance  taxes,  local  taxation,  accounts,  collateral  legacy 
taxes. 

The  Bureau  of  Public  Utilities  should  be  organized  with  an 
associate  commissioner  as  the  administrative  head,  havitig  re- 
sponsible to  him  a  secretary  and  the  administrative  and  tech- 


28  STATE  ADMINISTRATION.  [Jan. 

nical  staff  of  the  division,  including  engineers,  inspectors,  ac- 
countants, clerks,  etc.  Within  the  bureau  should  also  be  the 
Public  Utilities  Commission,  of  which  the  associate  commis- 
sioner should  be  chairman.  The  associate  commissioner  should 
be  authorized  to  assign  to  other  members  of  the  Utilities  Com- 
mission such  administrative  duties,  in  addition  to  their  quasi- 
judicial  duties,  as  he  may  find  expedient. 

Labor  and  Industries. 

.'  .  .  This  new  department,  bearing  the  same  name  as  the  present 
Department  of  Labor  and  Industries,  includes  the  activities  of 
the  present  department  and  also  those  of  the  Department  of 
Industrial  Accidents. 

.  '  The  new  department  should  be  in  the  charge  of  a  commis- 

sioner, with  responsibility  for  its  entire  activities  other  than  the 
quasi-judicial  decisions  of  subsidiary,  boards.  Two  associate 
commissioners  are  designated  to  have  charge,  respectively,  of 
the  Industrial  Accident  Bureau,  comprising  the  activities  of  the 
present  Department  of  Industrial  Accidents  (which  it  is  not 
proposed  to  disturb),  and  the  Bureau  of  Service  and  Standards, 
including  the  Divisions  of  Standards,  Inspections,  Employ- 
ment, and  Statistics,  as  now  conducted.  It  is  proposed  that  the 
Minimum  Wage  Board  and  the  Board  of  Conciliation  and  Arbi- 
tration, having  a  common  membership,  should  continue  to 
function  as  at  present,  reporting  directly  to  the  commissioner 
with  respect  to  such  of  their  functions  as  may  be  within  his 
,       province. 

Agriculture  and  Conservation. 

This  new  department  is  a  combination  of  the  existing  De- 

<     partments  of  Agriculture  and  Conservation.     The  functions  of 

7.V<     the  two  bureaus  of  the  new  department  are  not  changed  othei 

>than  for  some  incidental  transfers  of  minor  activities  referred 

; '^^-     to  in  Section   IV.     The  new  department  should  have  at  its 

head  a  commissioner,  in  charge  of  the  general  administrative, 

clerical,  and  filing  systems  of  the  department.     Responsible  to 

r  him  should  be  two  associate  commissioners,  in  charge  of  the 

Bureaus  of  Agriculture  and  Conservation,  respectively. 


1922.]  HOUSE  —  No.  800.  29 

Public  Works. 

The  general  organization  of  this  department  is  not  affected. 
There  has  been  added  to  its  Highway  Bureau  the  maintenance 
and  construction  of  bridges  and  improved  highways,  now 
under  the  jurisdiction  of  the  MetropoUtan  District  Commission. 
This  transfer  does  not  include  the  care  of  bridle  paths,  lanes, 
and  unimproved  dirt  roads  within  the  metropolitan  park 
system. 

Public  Safety. 

The  new  Department  of  Public  Safety  includes  the  present 
department  of  that  name  and  the  Registration  Division  of  the 
Department  of  Civil  Service  and  Registration.  This  new  de- 
partment should  be  in  charge  of  a  commissioner,  who  would  be 
responsible  for  the  conduct  of  its  administrative  and  office 
affairs.  Under  him  and  reporting  directly  to  him  should  be  the 
various  existing  safety  and  registration  functions.  Certain 
incidental  transfers  of  registration  functions  affecting  the  new 
department,  and  the  transfer  of  certain  inspection  functions 
to  the  Department  of  Labor  and  Industries,  are  defined  in 
Section  IV. 

Public  Health. 
The  new  Department  of  Public  Health,  in  charge  of  a  com- 
missioner, without  associate  commissioners,  retains  jurisdiction 
of  the  functions  of  the  present  Department  of  Public  Health, 
except  for  the  conduct  of  its  sanatoria,  which  are  included  . 
within  the  new  Department  of  Public  Welfare.  The  com- 
mission has  recommended  that  there  be  added  to  the  Engineer- 
ing Division  of  this  department  responsibilities  for  engineering 
problems  connected  with  the  metropolitan  district  water  and 
sewer  systems,  corresponding  with  similar  responsibilities  which 
the  division  now  has  with  respect  to  other  parts  of  the  State. 

Education.  '  '   " 

-^ 

The  functions,  scope,  and  organization  plan  of  this  depart- 
ment are  not  affected  by  the  general  reorganization.    Transfers, 
of  certain  incidental  activities  to  or  from  this  department,  or 
their  discontinuance,  are  referred  to  in  Section  IV. 


30  STATE  ADMINISTRATION.  [Jan. 


Cinl  Service. 
This  department,  in  charge  of  a  commissioner,  retains  the 
functions  now  performed  by  the  Division  of  Civil  Service  in 
the  Department  of  Civil  Service  and  Registration.  The  com- 
missioner should  continue  the  general  executive  responsibility 
for  the  department,  having  associated  with  him  two  associate 
commissioners,  acting  as  a  board  of  civil  service,  as  at  present. 

Metropolitan  District. 
•  The  Commission  recommends  that,  in  the  interests  of  more 
efficient  administration,  the  supervisory  organization  of  the 
department  be  simplified  by  a  reduction  in  the  number  of  its 
commissioners.  It  is  proposed  to  place  the  full  responsibility 
for  the  administration  of  the  department  in  the  hands  of  a 
commissioner,  with  two  associate  commissioners  under  him, 
the  commissioner  to  take  charge  of  one  of  the  three  bureaus  of 
the  department's  activities,  and  the  associate  commissioners 
each  to  have  one  of  the  remaining  bureaus. 

Aside  from  this  simplification,  the  responsibilities  of  this 
department  are  reduced  by  the  transfer  of  the  maintenance  and 
construction  of^  its  bridges  and  improved  highways  to  the 
Department  of  Public  Works,  and  of  engineering  functions  in 
connection  with  the  design  of  water  and  sewerage  system  ex- 
tensions to  the  Department  of  Public  Health. 

Departments  under  Constitutional  Officers. 

The  departments  under  this  heading  are  those  of  the 
Treasurer,  Auditor,  Secretary,  and  Attorney-General. 

The  functions  of  the  Treasurer  are  simplified  under  the  re- 
organization by  transfer  of  bookkeeping  functions  to  the 
Department  of  Adnjinistration  and  Finance,  and  of  tax  collect- 
ing functions  to  the  Department  of  Corporate  Activities.  The 
Treasurer  should  retain  his  functions  as  custodian  of  cash  and 
trust  and  other  funds,  and  should  keep  at  least  one  of  his 
deputies  and  an  appropriate  subsidiary  force. 

The  functions  of  the  Auditing  Department  are  also  curtailed 
by  the  transfer  of  all  accounting  duties  to  the  Department  of 


1922.]  HOUSE  —  No.  800.  31 

Administration  and  Finance,  leaving  only  auditing  activities, 
which  should  be  performed  by  a  very  much  smaller  and 
simpler  organization  than  is  now  required. 

The  Department  of  the  Secretary  of  the  Commonwealth  is 
not  affected  by  the  reorganization  other  than  by  the  addition 
of  responsibility  for  the  State  Library,  and  the  association  of 
the  Ballot  Law  Commission  with  the  department. 

The  organization  of  the  Department  of  the  Attorney- 
General  and  its  functions  are  not  in  any  way  affected  by  the. 
reorganization. 

Executive  Activities. 

In  order  to  reduce  the  activities  of  this  character  as  far  as 
possible,  it  is  proposed  to  attach  to  the  Adjutant-General's 
Department  (referred  to  in  the  general  organization  diagram 
as  "Military")  the  x\rmory  Commission  and  the  Commission 
on  State  Aid  and  Pensions. 

The  only  other  executive  activities,  all  of  which  remain 
unchanged,  are  the  Commission  on  Uniformity  of  State  Legis- 
lation, the  Board  of  Appeal  from  Decisions  of  the  Tax  Com- 
missioner, and  the  Art  Commission. 

SECTION  II. 

Budget. 

In  this  section  the  Commission  reports  upon  the  budget 
system  and  procedure  governing  appropriation  and  expenditure 
of  public  money. 

The  principle  of  the  executive  budget  has  been  endorsed  and 
adopted  by  many  governments,  and  is  approved  by  this  Com- 
mission. As  applied  in  this  State  it  has  show^n  many  advantages 
and  few  defects.  The  latter  are  the  subject  of  the  following 
comments  and  recommendations:  — 

A  number  of  administrative  departments  carry  on  activities 
from  which  revenue  is  received.  In  some  cases  the  revenue  is 
expected  to  cover  the  cost  of  conducting  the  activity.  In  the 
present  form  of  budget  the  revenues  and  costs  of  the  activities 
are  so  widely  separated  as  to  make  comparisons  difficult.  If 
the  budget  figures  were  rearranged  to  bring  these  two  classes  of 
items  together,  and  the  net  loss,  if  any,  from  conducting  each 


32  STATE  ADMINISTRATION.  [Jan. 

activity  intended  to  be  self-supporting  were  added,  the  need  of 
revision  of  fees  or  charges  would  be  clearly  shown.  It  is  sug- 
gested that  this  change  in  form  of  the  budget  statement  be 
given  consideration  in  connection  with  the  general  changes  in 
accounting  practice  herein  recommended.  The  General  Court 
has  not  exercised  its  right  under  the  law  to  fix  the  form  of  the 
budget,  and  so  the  proposed  change  will  require  no  new  legis- 
lation. 

In  certain  cases  productive  activities,  such  as  agriculture, 
fluctuate  materially  with  weather  or  other  conditions.  Budget 
appropriations  for  such  activities  (which  must  not  be  exceeded) 
are  usually  based  on  normal  or  average  conditions.  Under  more 
favorable  conditions  greater  expenditures  might  yield  increased 
revenue  to  an  extent  that  the  net  cost  of  the  activity  would  be 
reduced.  This,  however,  is  not  permitted  beyond  the  limits  of 
the  budget  appropriations,  the  added  revenue  is  wholly  or  in 
part  lost,  and  a  desirable  incentive  for  productive  efficiency  and 
business  activity  is  denied.  In  other  cases  opportunities  for 
helpful  services  or  publications,  which  would  be  fully  covered 
by  added  revenue,  are  forfeited. 

The  Commission  recommends  that  this  limitation  be  cor- 
rected. The  remedy  is  not  uniform.  In  some  cases  the  flexi- 
bilities of  a  "materials  and  supplies"  appropriation,  which  js 
recommended  herein,  would  give  necessary  relief.  In  other 
cases,  where  additional  services  are  involved,  a  contingent  ap- 
propriation would  probably  be  necessary.  Recognizing  the 
dangers  of  such  appropriations,  the  Commission  would  surround 
those  here  recommended  with  very  definite  restrictions.  No 
such  appropriation  should  be  drawn  upon  without  approval  of 
the  head  of  the  department  in  which  the  activity  is  located  and 
of  the  budget  commissioner,  which  approval  should  be  given 
only  upon  a  specific  showing  that  the  revenues  of  the  activity 
would  be  increased  by  at  least  the  amount  of  the  proposed  ex- 
penditure. If  the  extra  expenditures  and  revenue  were  both 
within  the  same  fiscal  year,  as  would  ordinarily  be  the  case,  the 
net  cash  requirements  of  the  activity  would  be  decreased  rather 
than  increased.     In  any  event,  there  would  be  no  loss. 

The  present  budget,  together  with  the  general  accounting 
system  of  the  State  is,  in  principle,  upon  a  cash  basis.    Section 


1922.]  HOUSE  —  No.  800.  33 

IV  of  this  report  deals  at  length  with  accounting  matters,  and 
recommends  that  a  modern  system  be  substituted,  differing 
fundamentally  from  the  present  system  in  that  the  accounting 
entries  for  a  given  fiscal  period  will  represent  the  commitments 
of  that  period  (services  rendered  and  materials  used)  instead  of 
the  cash  transactions. 

The  proposed  accounting  system  will  require  a  corresponding 
change  in  the  budget  so  that  it  will  cover  appropriations  for  the 
service  rendered  and  materials  and  supplies  actually  used  during 
the  fiscal  year  instead  of  the  cash  which  may  happen  to  go 
out  from  the  treasury,  some  of  which  would  be  applicable  to 
another  fiscal  period. 

The  revenue  items  in  the  budget  should  be  changed  in  the 
same  manner  as  the  expenditure  items  above  discussed,  the 
revenues  of  a  given  year  being  represented  by  bills  rendered 
rather  than  by  bills  paid. 

The  new  system  provides  for  a  "supply"  account,  which  will 
be  charged  with  supplies  purchased  in  large  quantities  or  for 
extended  use,  and  credited  for  each  fiscal  period  with  whatever 
is  taken  out  for  current  use.  As  no  such  account  is  now  in  use, 
it  will  be  necessary  in  the  new  budget  to  make  supplementary 
appropriations  for  "increase  in  materials  and  supplies."  In 
some  years  after  the  initial  one,  the  supply  account  might  be 
drawn  down  and  the  net  budget  requirements  thereby  reduced 
instead  of  increased.  It  may  be  found  advisable,  in  v^'orking 
out  the  details  of  the  new  accounting  system,  to  provide  also 
a  budget  appropriation  for  materials  and  supplies  for  the  general 
purchasing  agent,  recommended  herein,  so  that  quantity  ptir- 
chases,  which  he  may  make  and  not  immediately  allocate  to 
specific  activities,  may  be  temporarily  provided  for. 

The  Commission  sees  no  objections  to  changes  in  the  budget 
system  of  the  character  above  proposed,  and  accordingly  recom- 
mends that  they  be  put  into  effect  coincident  with  the  estab- 
lishment of  the  new  accounting  system  designed  on  a  similar 
basis. 

Attention  is  called  to  the  fact  that  budget  estimates  are  now 
necessarily  made  up  before  the  end  of  the  prior  fiscal  year  and 
contain  a  statement  of  expenditures  for  that  year,  which,  in 
part,  is  estimated.     The  appropriations  for  the  following  year 


34  STATE  ADMINISTRATION.  [Jan. 

are  judged  in  large  measure  from  this  mixed  statement  of  facts 
and  estimates.  Furthermore,  the  budget  appropriation  bill  for 
a  given  fiscal  year  is  not  passed  until  at  least  one  third  of  that 
year  has  gone  by,  making  it  difficult  for  the  departments  to  ad- 
just themselves  to  any  radical  change  in  appropriations  or 
policy.  By  ending  the  fiscal  year  on  June  30,  corresponding  to 
Federal  practice,  the  actual  expenditures  of  the  year  would  be 
available  for  budget  studies,  and  the  appropriation  bill  would 
be  passed  only  a  short  time  before  the  beginning  of  the  new 
year  to  which  it  would  apply.  There  may  be  objections  to  such 
a  change  which  are  not  within  the  scope  of  the  Commission's 
work,  and  so  attention  is  called  to  the  matter  without  definite 
recommendation. 

SECTION  III. 

Under  this  section  the  Commission  was  instructed  to 
determine  — 

Whether,  having  in  view  the  entire  programme  of  the  state's  under- 
takings, the  needs  of  the  state,  and  the  cost  and  relative  importance  of 
each  undertaking,  there  are  any  which  it  is  advisable  that  the  state  should 
curtail  or  wholly  give  up. 

Abandonment  of  Activities. 

The  Commission  is  impressed  with  the  need  of  a  substantial 
reduction  in  the  administrative  expenditures  of  the  State. 
The  per  capita  annual  cost  of  the  State  government  is  high  as 
compared  with  other  similar  States.  The  latest  available 
figures  of  this  character  are  those  compiled  in  1919  by  the 
United  States  Bureau  of  the  Census.  The  Massachusetts 
figure  for  State-wide  activities,  applicable  to  the  fiscal  year 
ending  Nov.  30,  1918,  was  S8.06  as  compared  with  $5.42,  the 
average  of  all  forty-eight  States.  These  figures  are  exclusive 
of  capital  expenditures,  but  include  interest  and  amortization 
charges.  Some  of  the  special  reasons  for  the  high  per  capita 
cost  in  Massachusetts  will  be  set  forth  in  the  later  departmental 
discussions  (Section  IV). 

After  a  careful  study  of  the  activities  within  the  various 
administrative  departments,  the  Commission  has  come  to  the 


1922.]  HOUSE  —  No.  800.  35 

conclusion  that  a  number  of  these  activities  can  be  abandoned 
or  materially  curtailed  without  serious  detriment  to  the  interests 
of  the  State.  The  activities  in  question,  with  the  Commission's 
recommendation  applying  thereto,  are  set  forth  in  the  following 
paragraphs :  — 

Every  ten  years,  midway  between  the  Federal  censuses,  the 
Secretary  of  the  Commonwealth  is  required  to  take  a  census 
of  the  inhabitants  of  the  cities  and  towns,  with  particular 
reference  to  legal  voters.  Each  such  census  involves  an  ex- 
penditure of  approximately  $500,000,  or  an  average  of  $50,000 
per  year.  Its  real  purpose  is  to  fix  the  apportionment  of 
representatives  in  the  Legislature.  The  Commission  sees  no 
reason  why  all  necessary  data  cannot  be  determined  from  lists 
of  legal  voters  regularly  compiled  by  the  several  cities  and 
towns,  and  it  therefore  recommends  the  collecting  of  such  lists 
by  the  Secretary  in  1925,  and  at  ten-year  intervals  thereafter 
as  a  basis  of  the  apportionments  then  required.  Such  procedure 
would  not  be  in  full  conformity  with  constitutional  require- 
ments, and  the  Commission  accordingly  recommends  that 
immediate  steps  be  taken  to  bring  about  the  necessary  con- 
stitutional amendment  so  that  it  may  be  effective  in  1925. 

The  Adjutant-General's  Department  contains  a  Bureau  of 
Military  Intelligence,  which  served  a  useful  purpose  during  the 
war,  but  is  now  engaged  in  so-called  ''Americanization" 
work,  which  duplicates  w^ork  of  this  character  done  by  the 
Department  of  Education.  The  latter  department  being  the 
logical  agency  for  handling  such  work,  the  Commission  recom- 
mends that  the  activities  of  the  Bureau  of  Military  Intelligence 
be  abolished  except  as  to  purely  military  affairs. 

The  Department  of  Education  carries  on  so-called  "Ameri- 
canization" work  in  three  separate  divisions,  handling,  re- 
spectively, immigrant  aid,  adult  alien  education,  and  library 
facilities  for  aliens.  This  work  has  all  been  helpful  during  the 
recent  war  period  in  w^hich  it  has  been  carried  on,  but  it  is  the 
opinion  of  the  Commission  that  the  reception  of  immigrants 
and  the  necessary  attention  to  their  needs  prior  to  their  be- 
coming established  should  be  taken  care  of  by  the  Federal 
government  or  by  other  agencies.  The  Commission  therefore 
recommends    that    the    Division    of    Immigration    and    Ameri- 


36  STATE  ADMINISTRATION.  [Jan. 

canization,  in  charge  of  this  work,  be  continued  only  until 
economic  conditions  have  been  restored  to  a  reasonable  degree 
of  stability,  or  until  other  agencies  can  assume  its  functions. 

The  Commission  understands  that  certain  State  appropria- 
tions now  available  for  aid  to  veterans  are  expended  under  the 
supervision  of  the  American  Legion,  and  recommends  that  this 
practice  be  discontinued  as  being  inconsistent  with  prescribed 
limitations  upon  State  expenditures. 

The  Department  of  Labor  and  Industries  contains  a  Bureau 
of  Foreign  and  Domestic  Commerce,  which  compiles  statistics 
and  publishes  reports  along  such  lines  as  its  title  implies. 
This  department  also  takes  an  annual  census  of  the  manu- 
facturing industries  of  the  State,  and  publishes  bulletins  and 
reports  containing  voluminous  statistics  of  industrial  activities 
and  labor  conditions.  It  is  the  opinion  of  the  Commission  that 
the  needs  of  the  State  for  information  of  this  character  can  be 
satisfactorily  met  in  most  cases  by  the  census  and  other 
statistical  publications  of  the  Federal  government.  The 
abolishing  or  radical  curtailment  of  these  activities  is  therefore 
recommended. 

The  Department  of  Education  conducts  the  so-called  Nautical 
School  for  the  training  of  merchant  seamen  and  navigators. 
The  net  cost  of  this  undertaking,  after  deducting  a  Federal 
grant  of  $25,000,  is  approximately  $70,000  per  annum.  It 
would  appear  that  the  training  of  the  necessary  personnel  for 
a  merchant  marine  is  logically  a  Federal  or  a  private,  rather 
than  a  State,  function.  In  spite  of  the  history  and  traditions 
of  the  Nautical  School,  the  Commission  feels  that  this  annual 
expenditure  of  $70,000  of  State  funds  is  unwise.  The  present 
time,  with  its  need  of  economy  and  a  minimum  usefulness  of  the 
School,  seems  to  offer  more  convincing  reasons  and  opportuni- 
ties for  abandoning  this  activity  than  will  again  occur.  The 
Commission  therefore  recommends  that  steps  be  taken  to 
this  end,  or  to  effect  a  transfer  of  the  school  to  Federal  or 
other  agencies. 

Curtailment  of  Activities. 
In  addition  to  the  above  list  which  covers  abandonments  of 
activities,  the  Conwnission  makes  the  following  suggestionsfor 
curtailment:  — 


1922.]  HOUSE  —  No.  800.  37 

The  volume  and  cost  of  state  printing  have  for  some  time 
been  a  matter  deserving  serious  consideration.  Noteworthy  re- 
ductions in  the  numbers  and  scope  of  departmental  reports 
have  been  made  through  the  authority  vested  in  the  Supervisor 
of  Administration,  but  further  reduction  should  be  made. 

As  an  illustration  of  superfluous  distribution  of  publications, 
the  Commission  calls  attention  to  a  copy  of  the  latest  annual 
report  of  one  of  the  State  hospitals,  which  has  come  into  its 
possession.  This  report  was  mailed  to  a  person  who  was  for- 
merly one  of  the  trustees  of  this  institution.  He  resigned  from 
that  position  about  twenty-five  years  ago,  and  had  no  subse- 
quent connection  with  the  institution.  He  died  sixteen  years 
ago.  Copies  of  the  annual  report  have  been  mailed  each  year 
since  his  resignation  from  the  board. 

It  is  the  custom  of  business  establishments  that  maintain 
mailing  lists  for  distribution  of  advertising  or  other  literature  to 
issue  periodical  notices  to  all  persons  on  such  lists  to  the  effect 
that  their  names  will  be  removed  unless  a  specific  request  is 
received  for  continuance  of  the  mailing  service.  Such  procedure 
is  an  obvious  means  of  keeping  printing  and  mailing  costs  within 
reasonable  limits. 

In  its  study  of  the  State  printing  situation,  the  Commission 
has  made  a  collection  of  State  publications,  with  the  size  of  each 
and  number  of  copies  printed  during  the  past  year.  If  these 
copies  wxre  stacked  one  upon  another,  the  pile  of  this  one  year's 
issue  would  reach  the  astounding  height  of  about  three  and  one- 
half  miles,  or  thirty-six  times  the  height  of  the  custom  house 
tower.  If  placed  end  to  end  they  would  make  a  narrow  foot- 
path from  the  State  House  in  Boston  to  Trenton,  N.  J.,  or 
well  into  Canada  on  the  north.  The  cost  of  these  publications, 
together  with  stationery,  printed  forms,  etc.,  is  approximately 
three  quarters  of  a  million  dollars  per  year.  The  Commission 
has  been  advised  that  by  standardization  and  systematic  han- 
dling alone,  without  curtailment  of  quantity,  the  cost  could  be 
reduced  by  about  25  per  cent. 

Inquiry  regarding  methods  of  distributing  publications  indi- 
cates that  there  is  little  system  or  effort  toward  economy  in  the 
distribution  made  through  the  departments.  On  the  other 
hand,   the  public   document  room  has  recently  developed   an 


38 


STATE  ADMINISTRATION. 


[Jan. 


admirable  system  for  that  part  of  the  distribution  for  which  it 
is  responsible.  The  number  of  copies  of  documents  ordered 
each  year  for  the  document  room  is  carefully  determined  on  the 


u. 

h    10 

u. 
O 

h    9 

a 

-I  8 

(/) 

D 

27 


GRAPHIC    REPRESENTATION 
OF   VOLUME    OF 

ANNUAL  STATE   PRINTING 

PREPARED    BY 

Commission  on  state  Administration 
AND  Expenditures 

Boston  Mass  Dec    1921 

Comparison  of  Height  of 

Custom  House  Tower 

WITH  All  State  Printed  Matter 

Piled  One  Volume  Upon  Another 

Based  Upon 

Latest  Complete  Collection 


SUMMARY  OF  PRINTING 


APPROX  NO.    TOT  NO. 
PAGES  FEET 


Printing  through  the  Sec.  of  State 22.653000  6,740 

Legislative  Prlnting....„ .9.677000  2,880 

Department  Bulletins  &  Misc.  Printing  ...18.697000  4.450 

Public  Documents  (Annual  Reports) 12.880.000  3.830 

Totals      63,907000  17900 


CUSTOM 
HOUSE 
TOWER 


1 


basis  of  the  previous  year's  actualHssue.'  Back  numbers  are 
systematically  reduced  from  year  to  year^and  sold.  No  docu- 
ments are  issued  except  upon  request. 


1922.]  HOUSE  —  No.  800.  39 

The  Commission  makes  the  following  recommendations  re- 
garding State  printing :  — 

1.  That  the  distribution  of  departmental  publications  be  re- 
moved from  the  departments  and  handled  exclusively  through 
the  public  document  room.  There  should  be  no  standing  mail- 
ing lists  for  annual  reports,  although  any  recipient  of  a  report 
might,  by  acknowledging  its  receipt  and  filing  a  request,  receive 
the  next  succeeding  issue. 

2.  That  arrangements  be  made  with  postal  authorities  for 
mailing  permits  under  which  the  handling  of  postage  stamps  in 
large  numbers  by  State  employees  without  adequate  check 
would  be  avoided. 

3.  That  promiscuous  furnishing  of  public  documents  to 
casual  visitors  to  the  State  House  be  discontinued.  Deserving 
inquirers  should  be  sent  by  the  departments  to  the  document 
room  with  wTitten  authorizations  for  publications.  School  chil- 
dren should  bring  written  requests  from  teachers  or  parents. 

4.  That  the  number  of  distinct  publications  be  reduced  in 
accordance  with  the  intent  of  section  8,  Part  I,  chapter  350  of 
the  General  Acts  of  1919,  which  provides  that  all  reports  re- 
quired by  law  from  any  State  agency  be  made  by  the  head  of 
the  department  within  which  such  agency  was  thereafter  to  be 
located.  Separate  reports  are  still  published  by  subsidiary 
agencies,  containing  much  wholly  worthless  matter,  or  matter 
which  is  duplicated  in  the  required  reports  of  the  departments. 

5.  That  the  matter  included  in  annual  and  other  reports  of 
the  departments  be  further  systematically  rearranged  and  con- 
densed. 

6.  That  all  printed  forms  be  standardized  and  an  appropriate 
quality  of  paper  be  used  therefor  and  for  general  printing. 

7.  That  the  Commissioner  of  Administration  and  Finance 
(proposed  herein)  undertake,  through  the  organization  recom- 
mended for  such  purposes,  a  thorough  study  of  the  printing 
situation  as  outlined  in  the  above  recommendations,  and  trans- 
mit his  recommendations  in  detail  to  the  Governor,  for  con- 
sideration and  action  by  the  Administrative  Cabinet. 

Section  VIII  of  this  report  recommends  that  charges  be  de- 
termined and  systematically  applied  for  valuable  State  publica- 
tions to  persons  not  entitled  to  free  distribution,  to  the  end 


40  STATE  ADMINISTRATION.  [Jan. 

that  further  curtailment  may  be  effected  or  compensating 
revenue  received. 

The  Commission  has  viewed  with  concern  the  workings  and 
tendencies  of  a  policy  whereby  the  State  agrees  to  reimburse  a 
city  or  town,  wholly  or  in  part,  for  the  cost  of  undertaking 
certain  activities  of  a  local  nature.  This  policy  undoubtedly 
tends  to  stimulate  the  undertaking  of  needed  local  improve- 
ments, but  also  tends  to  increase  general  taxation  to  the  extent 
that  the  good  accomplished  may  be  far  exceeded  by  the  burden 
upon  the  State  as  a  whole.  The  burden  of  taxation,  created  by 
•constantly  increasing  activities,  is  placing  Massachusetts  citizens 
and  industries  at  a  distinct  disadvantage,  compared  with  similar 
industries  carried  on  in  other  States. 

The  Commission  is  therefore  of  the  opinion,  and  accordingly 
recommends,  that  further  local  activities  should  be  financed  by 
the  cities  and  tow^ns  without  State  aid.  However,  this  recom- 
mendation shall  not  be  construed  as  being  opposed  to  the  pres- 
ent policy  of  State  aid  to  certain  activities  conducted  under  the 
direction  of  the  Departments  of  Education  and  Public  Welfare. 

In  Section  I  of  this  report  recommendations  are  made  cover- 
ing consolidations  of  certain  departments  and  activities.  If 
these  recommendations  are  made  effective,  there  will  follow  a 
substantial  reduction  in  organizations  necessary  for  carrying  on 
the  purchasing,  engineering,  construction,  police,  and  miscel- 
laneous clerical  functions  of  the  State,  without,  however,  any 
necessary  accompanying  curtailment  of  the  activities  involved. 

SECTION  IV. 

This  section  offers  opportunity  to  the  Commission  to  dis- 
cuss — 

(a)  Departmental  and  institutional  business  organization  and  manage- 
ment. 

(b)  The  method  of  handling  and  auditing  departmental,  institutional, 
and  other  accounts  of  the  Commonwealth. 

Departmental  Comments. 
The   alphabetically   arranged   departmental   comments   con- 
tained herein  will  in  general  be  limited  to  the  activities  of  the 
departments  as  now  organized,  with  certain  suggestions  looking 


1922.]  HOUSE  —  No.  800.  41 

to  the  transfer  of  incidental  functions  from  one  department  to 
another  in  which  they  would  be  more  logically  located.  Further 
suggestions  with  reference  to  more  extensive  reorganizations  of 
the  existing  departments  have  already  been  made  in  Section  I. 
This  discussion  covers  not  only  the  administrative  departments 
but  certain  of  the  so-called  "executive"  departments  whose 
activities  are  largely  administrative  in  character. 

It  may  appear  that  some  of  the  interdepartmental  transfers 
and  readjustments  recommended  are  unimportant  as  compared 
with  other  matters  not  fully  discussed,  but  the  Commission  has 
been  influenced  in  its  studies  by  the  fact  that  any  needed  re- 
organization and  refinement  of  intradepartmental  activities  are 
matters  for  which  department  heads  are  properly  responsible; 
but  interdepartmental  relations  and  reorganizations  are  beyond 
the  scope  of  department  heads,  and  should  therefore  be  given 
more  extensive  attention  herein. 

Organization  and  Management. 

AdjutanUGeneral. 

This  department  has  charge  of  the  military  affairs  of  the 
Commonwealth,  including  its  units  of  the  National  Guard 
organization.  The  Commission  has  not  studied'  the  military 
activities  of  the  department;  but  in  view  of  the  unsettled 
status  of  the  National  Guard  and  the  confusion  existing  be- 
tween State  and  Federal  governments  with  respect  thereto,  it 
recommends  that  the  military  affairs  committee  of  the  General 
Court  give  the  matter  careful  attention. 

It  is  recommended  in  the  preceding  section  that  the  Military 
Intelligence  Bureau  of  this  department  be  abolished  except  for 
purely  military  functions. 

Agriculture.  i   r^.) 

This  department  is  charged  with  the  development  of  the 
agricultural  resources  of  the  State.  Its  activities  do  not  require 
special  comment  other  than  that  certain  minor  ones  might  more 
effectively  be  administered  by  other  departments.  It  is  ac- 
cordingly recommended  that  certain  food  inspections,  including 
milk,  butter,  and  other  dairy  products,  be  transferred  from  this 


42  STATE  ADMINISTRATION.  [Jan. 

department  to  that  of  Public  Health,  which  has  other  extensive 
similar  duties. 

This  department  also  conducts  certain  extension  courses  for 
education  of  farmers  in  agricultural  matters.  It  appears  that 
the  Department  of  Education  could  properly  add  such  courses 
,  to  its  extension  work,  to  be  administered  with  the  assistance  of 
the  Agricultural  College.  The  basis  of  such  transfer  is  the 
principle  that  in  general  the  Department  of  Agriculture  should 
do  administrative  work,  leaving  educational  activities  to  the 
Department  of  Education. 

Auditor. 
This  department  now  has  the  responsibility  of  prescribing 
and  handling  the  general  accounting  work  of  the  State  depart- 
ments, but  does  not  do  real  auditing  in  a  thorough  and  com- 
plete manner.  The  second  part  of  this  section  deals  with  the 
general  subject  of  accounting,  and  recommends  that  all  book- 
keeping be  done  in  another  department.  It  is  here  sufficient  to 
say  that  the  auditing  functions  of  this  department,  which  it  is 
not  proposed  to  disturb,  should  be  extended  to  include  all  de- 
partments and  institutions,  the  accounting  records  of  which 
should  be  accessible  at  all  reasonable  times.  Work  of  the  above 
character  would  not  require  the  keeping  of  any  books  of  ac- 
count, and  could  be  covered  in  a  very  brief  annual  report,  in 
place  of  the  present  voluminous  but  not  enlightening  one. 

Banking  and  Insurance. 

This  department,  engaged  in  supervision  of  corporate  activi- 
ties, consists  of  three  major  divisions.  Banking,  Insurance,  and 
Savings  Bank  Life  Insurance.  It  has  already  been  pointed  out 
that  these  divisions  are  practically  distinct,  and  that  the  de- 
partment has  no  responsible  head. 

With  reference  to  the  Division  of  Banking,  it  appears  that 
the  work  under  its  jurisdiction  has  so  increased  during  recent 
years  as  to  justify  the  appointment  of  a  deputy  commissioner. 
We  believe  that  this  added  official  would  assist  in  more  prompt 
and  efficient  functioning  of  the  organization. 

In  its  studies  of  the  existing  methods  of  supervision  of  fire  in- 
surance companies,  the  Commission  has  become  impressed  with 


1922.]  HOUSE  —  No.  800.  43 

the  desirability  of  more  extensive  regulation  of  the  activities 
.  and  methods  of  these  companies.  It  is  therefore  recommended 
that  a  deputy  commissioner  or  otherwise  entitled  assistant  be 
appointed  or  assigned  to  make  a  thorough  investigation  of  the 
practices  of  all  fire  insurance  companies  doing  business  within 
the  Commonwealth,  with  particular  reference  to  methods  of 
fixing  rates  and  classification  of  risks,  and  with  power  to  require 
the  presence  and  testimony  of  witnesses  and  the  production  of 
books  and  records.  This  deputy  commissioner  should  be  au- 
thorized to  employ  the  assistants  necessary  for  carrying  on  this 
investigation,  and  to  prepare  a  report  of  findings  to  be  sub- 
mitted to  the  General  Court  in  1923. 

In  furtherance  of  the  proposed  study  of  insurance  rates  and 
classification  of  risks,  it  is  suggested  that  a  representative  of 
this  department  be  delen:ated  to  attend  meetings  of  the  associa- 
tion of  fire  insurance  companies  at  which  such  matters  are  con- 
sidered. 

It  is  recommended  in  Section  VIII  of  this  report  that  the  fees 
charged  for  examinations  of  banks,  insurance  companies,  and 
other  corporate  activities  supervised  by  this  department  be  in- 
creased to  cover  the  cost  of  the  service. 


Corporations  and  Taxation, 

This  department,  in  charge  of  one  commissioner,  has  two 
divisions,  Corporations  and  Taxation,  respectively. 

The  income  tax  activities  of  the  latter  division  are  located  in 
offices  outside  the  State  House,  on  which  a  substantial  rental  is 
paid.  The  separation  of  this  division  from  the  rest  of  the  de- 
partment involves  a  larger  clerical  organization  than  would 
otherwise  be  necessary  for  carrying  on  its  work.  It  is  recom- 
mended that  space  be  found  in  the  State  House  for  this  divi- 
sion. The  saving  in  rental  and  clerical  services  from  such  a 
move  would  amount  to  about  $70,000  annually. 

The  Tax  Division  should  assess  and  collect  all  taxes,  including 
the  collateral  legacy  tax  now  administered  by  the  Treasurer, 
and  should  employ  all  reasonable  means  of  collecting  amounts 
due  before  calling  in  the  Attorney-General  for  legal  proceedings. 

A  further  substantial  saving  in  clerical   cost,    estimated  at 


44  STATE  ADMINISTRATION.  [Jan. 

from  S25,000  to  $40,000  per  year,  would  be  effected  by  requir- 
ing advance  payment  of  income  taxes  in  connection  with  the 
returns  now  filed  early  in  the  year.  This  would  save  a  second 
handling  of  the  returns,  after  the  original  filing,  for  the  purpose 
of  rendering  bills,  and  a  third  handling  in  October,  when  the 
bills  are  now  paid.  The  Income  Tax  Division  advises  that  com- 
paratively few  original  returns  are  in  error,  so  that  the  adjust- 
ments required  on  account  of  incorrect  payments  of  income  tax 
would  be  unimportant. 

As  opposed  to  the  advance  payment  of  these  taxes  is  the 
argument  that  the  taxpayers  would  lose  the  use  of  their  money 
for  more  than  six  months,  the  average  return  on  this  money 
while  in  their  hands  being  presumably  greater  than  that  which 
the  State  would  save  through  relief  from  present  temporary 
borrowings,  or  would  earn  from*  investment  of  any  surplus 
funds  received.  Since  the  income  taxes  are  assessed  for  the 
benefit  of  the  cities  and  towns,  and  are  distributed  to  them  after 
deducting  administrative  costs,  the  saving  from  advance  collec- 
tion would  ultimately  accrue  to  the  cities  and  towns  rather 
than  to  the  Commonwealth.  After  consideration  of  the  matter, 
the  Commission  recommends  that  income  taxes  be  paid  at  the 
time  of  filing  returns  instead  of  in  arrears,  as  at  present.       , 

This  department  also  includes  a  Division  of  Accounts,  which 
has  developed  standard  accounting  systems  for  cities  and  towns 
of  the  State,  which  systems  are  put  into  effect  by  this  division 
upon  application.  The  importance  of  uniformity  of  municipal 
accounting  in  permitting  intelligent  comparisons  of  administra- 
tive costs  is  such  that  the  Commission  recommends  the  uniform 
adoption  of  the  standard  system  throughout  the  State,  and  to 
this  end  proposes  that  the  cities  act  upon  the  matter  through 
their  governing  bodies  during  1922,  and  that  all  towns  include 
it  in  their  warrants  during  1923. 

The  director  of  this  division  should  also  be  empowered  to 
prepare  and  publish  a  book  of  instructions  covering  the  standard 
system  of  municipal  accounting  now  in  effect,  with  such  modifi- 
cations as  may  be  found  desirable  for  consistency  with  the  new 
system  of  State  accounting  proposed  herein.  Such  instructions 
would  facilitate  the  introduction  of  the  standard  system  and  re- 
duce the  required  supervision. 


1922.]  HOUSE  —  No.  800.  45 

The  Commission  recommends  that  the  accounts  of  the  Income 
Tax  Division,  which  are  not  now  examined  by  the  Auditor's 
Department,  be  subject  to  its  audits  in  the  future. 


Civil  Service  and  Registration, 

This  department  contains  two  distinct  divisions,  which  have 
no  definite  relations  with  each  other. 

The  Civil  Service  Division  is  discussed  at  considerable  length 
in  Section  VI  of  this  report,  and  recommendations  for  im- 
portant changes  in  its  functioning  are  made.  Briefly,  these 
changes  include  a  curtailment  of  the  exemption  list,  the  creation 
of  a  class  of  duties  for  which  competitive  examinations  will  not 
be  required  but  otherwise  included  in  the  classified  service,  and 
the  substitution  of  a  Board  of  Review  ha\ing  final  responsibility 
over  contested  cases  of  discharge  of  employees. 

It  is  also  recommended  elsewhere  that  moderate  fees  be 
charged  for  examinations,  for  the  partial  support  of  the  division. 
The  Commission  has  been  unable  to  obtain  from  this  di\ision 
any  definite  information  regarding  the  cost  per  applicant  of 
preparing  and  conducting  examinations,  but  it  has  gained  the 
impression  that  this  cost  is  excessive,  and  recommends  that  this 
department  be  called  upon  to  analyze  its  activities,  with  a  view 
to  possible  greater  efficiency. 

The  Commission,  charged  as  it  is  with  the  duty  of  bringing 
forward  any  suggestion  that  would  tend  to  improve  the  ad- 
ministration of  State  affairs,  has  considered  the  matter  of  the 
preference  now  accorded  by  law  to  veterans  applying  for  State 
employment. 

The  majority  of  the  Commission  is  of  the  opinion  that,  viewed 
solely  from  the  standpoint  of  securing  the  best  qualified  appli- 
cant for  a  State  position,  the  preference  law  is  undoubtedly 
detrimental.  The  minority  of  the  Commission  is  of  the  opinion 
that  the  law  has  not  proved  detrimental  in  this  respect. 

This,  however,  is  not  the  only  standpoint  from  which  the 
preference  law  should  be  viewed.  It  is,  in  its  essence,  a  recog- 
nition by  the  State  of  services  rendered  in  times  of  national 
stress  and  a  measure  of  reward  for  such  services.  It  is  a  ques- 
tion of  State  policy  whether  this  is  a  proper  method  of  recog- 


46  .  STATE  ADMINISTRATION.  [Jan. 

nizing  and  rewarding  these  services,  and  on  this  question  the 
Commission  as  such  expresses  no  opinion. 

The  Division  of  Registration  carries  on  a  wide  range  of  activi- 
ties, but  does  not  handle  all  the  registration  work  provided  for 
by  the  statutes.  Most  of  the  licensing  activities  now  carried 
on  in  other  departments  should  be  transferred  to  the  Division 
of  Registration,  including  the  following:  engineers,  firemen, 
hoisting  engineers,  elevator  operators,  and  plumbers. 

In  Section  VIII  of  this  report  it  is  recommended  that  regis- 
tration fees  be  standardized  to  avoid  a  considerable  number  of 
existing  inconsistencies,  and  that  increases  be  made  where 
practicable  to  place  the  registration  activities  upon  a  self- 
supporting  basis. 

The  Commission  believes  that  it  should  be  possible  to  simplify 
the  registration  organization  through  a  combination  of  its  ad- 
ministrative and  clerical  forces  so  that  the  cost  of  examinations 
would  be  reduced.  The  recommendation  of  the  Commission  is 
that  the  registration  boards  be  brought  together,  so  that  a  joint 
clerical  organization  may  handle  their  combined  work  instead  of 
having  independent  clerical  staffs  and  office  space,  as  is,  in 
part,  the  case  at  present.  The  routine  functioning  of  the 
organization,  aside  from  actual  examination  of  applicants, 
should  be  in  the  hands  of  an  executive  secretary. 

There  is  at  present  some  inconsistency  in  the  amount  and 
method  of  compensation  of  the  members  of  the  registration 
boards.  The  Commission  recommends  that  the  commissioner 
in  charge  of  this  division  be  called  upon  to  report  a  revised  plan 
of  organization  and  of  compensation  for  registration  super- 
vision. 

Conservation, 

This  department  carries  on  activities  which  are  in  many  re- 
spects closely  related  to  the  Department  of  Agriculture,  and  a 
more  intimate  relation  between  the  two  departments  is  recom- 
mended in  Section  I. 

The  transfer  to  this  department  of  responsibility  for  the  so- 
called  "province"  lands  from  the  Department  of  Public  Works 
is  recommended;  also  that  all  pest  control  activities  now 
carried  on  by  several  departments,  except  the  metropolitan  dis- 
trict, be  concentrated  in  this  department. 


1922.1  HOUSE  —  No.  800.  47 


Corrections. 

As  the  result  of  its  surveys  of  this  department,  the  Commis- 
sion has  reached  the  conclusion  that  it  has  under  its  supervision 
too  many  separate  institutions,  none  of  which  is  fully  occupied. 
The  State  Prison  at  Charlestown  is  obsolete,  and  there  appears 
to  be  no  question  but  that  it  should  be  abandoned  as  soon  as  it 
is  practicable  to  do  so.  The  property  on  which  this  prison  is 
located  has  a  value  for  other  purposes  which  has  been  estimated 
between  S750,000  and  $1,000,000. 

As  to  the  disposition  of  the  Charlestown  prisoners,  it  is  the 
opinion  of  the  Commission  that  they  should  be  transferred  to 
Bridgewater.  The  facilities  at  this  point  could  be  made  suitable 
for  the  safe  confinement  and  proper  housing  of  the  prisoners  by 
comparatively  simple  alterations  in  the  buildings  and  the 
erection  of  a  custodial  wall.  It  is  estimated  that  this  work 
should  cost  not  exceeding  $400,000.  The  custodial  wall  should 
include,  not  only  the  buildings  now  to  be  used  for  prison  pur- 
poses, but  also  sufficient  space  for  future  new  buildings.  Under 
this  plan,  consolidation  of  prisons  could  be  effected  at  a  cost 
(including  the  custodial  wall)  less  than  the  estimated  sale  value 
of  the  Charlestown  property;  and  if  at  a  later  date  new  and 
more  modern  prison  facilities  should  be  needed,  they  could  be 
provided  without  material  loss  on  account  of  the  work  now 
done.  It  is  estimated  that  the  annual  saving  in  prison  opera- 
tion from  the  proposed  consolidation  would  be  not  less  than 
$150,000.  To  this  amount  should  be  added  the  substantial  re- 
duction in  commissary  expense  which  would  result  from  the 
further  cultivation  by  prisoners  of  the  fertile  but  now  unde- 
veloped land  owned  by  the  State  in  connection  with  the  Bridge- 
water  plant. 

The  Prison  Camp  and  Hospital  at  West  Rutland  is  an  ex- 
pensive institution  to  maintain,  due  to  its  small  population,  but 
it  serves  a  useful  purpose  and  is  well  managed.  It  is  p'robable 
that  a  substantial  saving  in  operating  cost  would  result  if  a 
small  separate  hospital  for  the  care  of  these  tubercular  prisoners 
were  built  within  the  proposed  custodial  wall  at  Bridgewater, 
but  the  Commission  makes  no  recommendation  with  respect  to 
such  transfer. 


48  STATE  ADMINISTRATION.  [Jan. 

In  brief,  the  Commission's  recommendations  with  reference 
to  correction  institutions  are  as  follows :  — 

1.  That  the  construction  of  a  new  State  Prison  or  the  acquisition  of 
the  plant  at  Deer  Island  for  remodeling  into  a  State  Prison  not  be  under- 
taken at  this  time. 

2.  That  the  State  Prison  at  Charlestown  be  abandoned  and  sold  at 
the  earliest  possible  date,  and  that  the  prisoners  be  removed  to  Bridge- 
water. 

3.  That  for  the  present  the  only  modifications  in  the  Bridgewater 
plant  be  the  addition  of  a  custodial  wall,  the  renovation  of  existing  build- 
ings, with  slight  changes  to  isolate  the  new  prisoners  from  the  present 
inmates,  and  the  addition  of  some  shop  space  if  necessary.  No  present 
buildings  should  be  destroyed. 

Education. 

This  department  conducts  a  wide  range  of  activities,  including 
supervision  of  the  Agricultural  College,  ten  normal  schools, 
three  textile  schools,  the  Nautical  School,  university  extension 
courses,  continuation  courses,  adult  alien  education,  and  immi- 
grant aid.  The  following  comments  apply  to  these  various 
activities :  — 

The  Agricultural  College,  in  addition  to  its  courses  which 
have  a  direct  bearing  upon  agricultural  pursuits,  offers  a  con- 
siderable number  of  courses  in  literature,  modern  languages, 
music,  etc.,  which  appear  to  be  somewhat  outside  the  proper 
scope  of  an  institution  of  this  character.  The  Commission  is 
not  able  to  make  specific  recommendations  with  respect  to  this 
matter,  but  recommends  that  the  Commissioner  of  Education 
be  called  upon  to  make  a  report  to  the  Governor  upon  the 
character  of  the  instruction  in  question,  the  extent  of  its  pat- 
ronage, the  fields  of  activity  which  the  graduates  enter,  and 
other  pertinent  matters,  all  with  a  view  to  possible  curtailment 
of  such  instruction  to  keep  it  within  proper  limits  for  an  agri- 
cultural college. 

A  study  of  the  normal  schools  shows  that  there  is  a  wide 
range  of  attendance  and  per  capita  cost  of  operating  the 
schools.  The  smaller  institutions,  such  as  Hyannis  and  North 
Adams,  show  a  per  capita  cost  very  much  higher  than  the 
larger  schools.  If  the  normal  instruction  could  be  concentrated 
into  a  smaller  number  of  schools,  with  a  per  capita  cost  not  ex- 


1922.]  HOUSE  —  No.  800.  49 

ceeding  that  of  the  largest  and  most  economically  operated 
present  school,  the  total  annual  cost  of  operating  the  group  of 
schools  would  be  reduced  by  more  than  $200,000.  As  against 
such  consolidation,  however,  it  is  contended  that  a  less  ccn- 
venient  geographical  distribution  would  curtail  the  number  of 
students  in  the  schools,  and  that  in  some  cases  students  would 
not  return  to  teach  in  the  outlying  sections  from  which  they 
come.  The  Commission  makes  no  definite  recommendation 
with  respect  to  reorganization  of  the  normal  school  system,  but 
is  convinced  that  the  possibilities  of  saving  from  such  reorgani- 
zation justify  a  further  careful  study. 

Elsewhere  in  this  report  (Section  III)  will  be  found  recom- 
mendations for  curtailment  or  abandonment  of  some  of  the 
other  activities  of  this  department,  including  the  Nautical 
School  and  immigrant  aids. 


Public  Health. 

The  activities  of  this  department  include  two  fairly  distinct 
groups,  viz.:  (1)  the  conduct  of  certain  sanatoria;  and  (2) 
other  miscellaneous  professional,  educational,  and  adminis- 
trative work  concerned  with  food,  general  public  health,  and 
engineering  of  water  supplies,  sewerage  systems,  etc. 

The  Commission's  examination  of  the  sanatoria  shows  a 
much  higher  service  personnel  per  patient  than  in  other  institu- 
tions, which,  in  part  at  least,  seems  to  be  unnecessary.  Else- 
where in  this  report  (Section  I)  the  Commission  recommends 
a  business  organization  available  to  supervise  the  operation  of 
these  institutions  by  combining  them  with  other  institutions  in 
a  new  Welfare  Department. 

The  fees  charged  by  this  department  for  sanatoria  patients 
are  wholly  inadequate  to  cover  the  cost,  and  collections  of  fees 
due  from  patients  are  not  systematically  followed  up.  The 
Commission  recommends  in  Section  VHI  that  higher  fees  be 
charged. 

The  sanitary  inspection  staff  of  this  department  has  ap- 
parently not  been  as  thorough  in  its  examination  of  the  condi- 
tion of  State  institutions  as  in  the  case  of  private  property. 
This  condition  should  not  continue. 


50  STATE  ADMINISTRATION.  [Jan. 

This  department  has  an  Engineering  Division  of  high  stand- 
ing for  consultation  and  designing  in  connection  with  water 
supplies  and  sewage  disposal.  The  statute  authorizes  this  divi- 
sion to  initiate  studies  of  the  future  needs  of  cities  and  towns 
with  respect  to  sewerage  systems,  so  that  necessary  future  de- 
velopments will  not  be  unduly  delayed.  Similar  provisions  with 
reference  to  water  systems  are  not  embodied  in  the  statutes, 
although  they  are  of  greater  importance.  It  is  recommended 
that  this  department  be  authorized  by  law  to  act  as  a  consult- 
ing agency  of  all  cities,  towns  and  districts  within  the  State 
with  respect  to  both  sewer  and  water  systems,  with  the  right  to 
initiate  studies  which  appear  to  be  in  the  public  interest.  Such 
general  provisions  would  bring  the  metropolitan  district  activi- 
ties of  this  character,  like  those  of  the  balance  of  the  State, 
within  the  scope  of  the  Health  Department's  engineering  service; 
and  the  Commission  is  of  the  opinion  that  this  is  desirable, 
leaving  to  the  Metropolitan  District  Commission  responsibility 
for  the  construction  of  the  new  systems  and  their  operation 
when  completed. 

Industrial  Accidents. 

The  work  of  this  department  is  confined  to  the  administration 
of  the  workmen's  compensation  act,  and  its  conduct  of  this 
work  has  met  with  the  approval  of  all  interested  parties. 

The  Commission's  examination  of  this  department  led  to  the 
impression  of  a  complicated  system  of  records  and  a  correspond- 
ingly liberal  clerical  organization.  The  publications  of  the  de- 
partment also  appear  to  contain  unnecessarily  voluminous  de- 
tails of  the  cases  handled. 

In  Section  I  of  this  report  the  Commission  recommends  the 
inclusion  of  this  department  in  the  proposed  new  Department 
of  Labor  and  Industries  without  changing  its  present  functions. 

Labor  and  Industries. 
The  duties  of  this  department  include  the  adjustment  of 
labor  controversies,  the  recommending  of  minimum  wages  for 
certain  industries,  and  investigations  of  industrial  conditions. 
Its  activities  also  include  the  compilation  of  extensive  data  and 
statistics  bearing  upon  commerce  and  manufactures,  which  the 


1922.]  HOUSE  —  No.  800.  51 

Commission,  in  Section  III,  recommends  be  abolished  or  largely 
curtailed. 

Several  activities  conducted  by  other  departments  are  closely 
allied  with  the  work  of  this  department,  and  might  more 
efficiently  be  carried  on  in  connection  therewith.  The  following 
transfers  to  this  department  are  accordingly  recommended: 
smoke  inspection  from  Public  Utilities;  building  inspection 
from  Public  Safety;  elevator  regulations  from  Public  Safety; 
boiler  inspection  from  Public  Safety. 

The  purpose  of  these  transfers  is  to  concentrate  so  far  as 
possible  inspection  activities  involved  in  building  construction 
into  one  department,  where  the  inspection  service  can  be  simpli- 
fied. This  department,  for  example,  can  undertake  the  smoke 
inspection  now  carried  on  by  the  Public  Utilities  Department 
without  an}'  increase  in  its  own  personnel. 

Mental  Diseases. 

This  department  spends  a  much  larger  amount  of  money  than 
any  other  State  department.  The  amount  of  money  collected 
for  the  support  of  inmates  in  its  institutions  is,  however,  com- 
paratively small,  and  the  Commission  is  of  the  opinion  that  a 
larger  organization  for  the  collection  of  fees,  particularly  through 
recurrent  investigation  of  the  financial  standing  of  relatives, 
would  result  in  a  substantial  increase  in  revenues.  Further  sug- 
gestions looking  to  increased  revenue  will  be  found  in  Section 
VIII. 

The  appalling  extent  of  mental  deficiency  within  the  Com- 
monwealth and  the  enormous  sums  of  money  expended  for  the 
care  of  patients  suggest  the  need  of  careful  stud}^  of  preventive 
measures.  Such  studies  have  been  made  in  the  past,  and  indi- 
cate that  the  root  of  the  problem  is  prevention,  and  that  early 
treatment  will  keep  many  prospective  patients  out  of  the  insti- 
tutions. It  is  hoped  that  further  increase  in  mental  disorders 
has  been  checked  by  the  work  already  done.  It  is,  however, 
by  no  means  certain  that  all  reasonable  efforts  looking  to  cur- 
tailment of  existing  deficiencies  and  prevention  of  further  de- 
velopments by  education,  isolation,  and  otherwise  have  been 
taken.  A  further  careful  study  of  preventive  measures  is  recom- 
mended. 


52  STATE  ADMINISTRATION.  [Jan. 


Metropolitan  District. 

The  metropolitan  district  activities  include  the  administra- 
tion of  parks  and  the  water  and  sewerage  systems  serving  the 
metropolitan  area.  It  has  been  a  serious  question  with  the 
Commission  whether  the  functions  and  activities  of  the  Metro- 
politan District  Commission  are  not  becoming  State  problems. 
The  Commission  is  clearly  of  the  opinion  that  the  problems  of 
routes  of  travel,  of  the  character  of  roadways,  and  of  the  loca- 
tion, width,  and  strength  of  bridges  should  be  studied  and  de- 
termined with  reference  to  the  needs  of  the  State  as  a  whole. 
It  therefore  recommends  that  the  laying  out,  construction  and 
maintenance  of  improved  highways  and  of  bridges  be  placed 
under  the  Department  of  Public  Works. 

The  question  of  whether  the  metropolitan  district  police 
should  be  transferred  to  the  Department  of  Public  Safety  was 
raised  in  the  Commission,  and  decided  in  the  negative  by  a 
divided  vote.  The  minority  felt  that  the  metropolitan  district 
police  should  properly  be  considered  in  the  same  category  with 
the  State  police  and  the  State  constabulary,  and  placed  under 
one  control,  namely,  the  Department  of  Public  Safety. 

The  Commission  is  not  prepared  to  recommend  at  this  time 
that  other  important  functions  of  the  Metropolitan  District 
Commission  be  allocated  to  other  departments.  It  does,  how- 
ever, recommend  that  minor  functions,  such  as  laboratory  work, 
forestation,  and  engineering  problems  of  water  and  sewerage,  be 
handled  through  other  existing  State  agencies. 

The  Commission  recommends  that  the  offices  of  this  depart- 
ment, now  in  two  separate  office  buildings,  be  combined  and 
condensed,  thereby  effecting  a  substantial  saving  in  rental. 

It  further  recommends,  in  the  interests  of  more  efficient  ad- 
ministration, that  the  Metropolitan  District  Commission  be  re- 
organized with  one  commissioner  and  two  associate  commis- 
sioners, one  to  be  a  director  of  parks,  one  a  director  of  water 
works,  and  one  a  director  of  sewers,  the  commissioner  to  be  the 
responsible  administrative  head  of  the  commission. 


1922.1  HOUSE  —  No.  800.  53 


Public  Utilities. 

This  department  is  primarily  engaged  in  the  supervision  and 
regulation  of  public  service  companies.  A  recommendation  that 
smoke  inspection,  a  function  foreign  to  this  department,  be 
transferred  to  Labor  and  Industries,  has  been  made  elsewhere. 

The  Commission  has  also  recommended  that  the  cost  of 
supervision  of  public  utilities  be  assessed  against  these  utilities 
in  all  cases,  to  prevent  discrimination  which  now  exists. 

Public  Welfare. 

This  department  conducts  two  distinct  classes  of  activities,  — 
institutional  and  general  aid  and  relief. 

Among  the  institutions  under  this  department  one,  namely, 
the  State  Infirmary  at  Tewksbury,  has  a  heterogeneous  collec- 
tion of  inmates  and  general  conditions  attending  it  which  need 
earh'  correction.  By  transferring  this  department  to  a  larger 
new  department  of  the  same  name,  it  is  proposed  to  make 
available  to  these  institutions  the  business  supervision  referred 
to  in  Section  I. 

Attention  is  also  called  to  the  large  amounts  of  State  money 
disbursed  by  the  Division  of  iVid  and  Relief  through  city  and 
town  agencies  without  adequate  State  supervision.  The  Com- 
mission has  not  formulated  any  definite  plan  for  correcting  any 
abuses  which  may  arise  in  this  connection,  but  recommends 
that  the  matter  be  given  further  attention. 

The  laws  of  Massachusetts  provide  for  a  five-year  residence 
in  a  particular  locality  before  ''settlement"  is  recognized.  The 
care  of  certain  settled  cases  falls  upon  the  cities  and  towns,  but 
unsettled  cases  are  supported  by  the  State.  In  many  cases  it  is 
very  difficult  to  solve  the  question  of  settlement  because  of  the 
five-year  period.  Most  other  States  have  adopted  a  much 
shorter  period,  usually  one  or  two  years.  It  is  recommended 
that  the  matter  of  a  similar  change  in  Massachusetts  be  given 
attention,  to  the  end  that  the  splution  of  settlement  problems 
be  simplified  and  the  responsibility  for  support  placed  where  it 
belongs. 


54  STATE  ADMINISTRATION.  [Jan. 


Public  Works. 

The  highway  and  other  construction  work  of  this  department 
is  carried  on  in  an  efficient  manner  and  with  due  regard  for 
future  needs.  The  Commission  has  elsewhere  recommended 
that  the  metropohtan  district  highway  and  bridge  construction 
and  maintenance  work  be  transferred  to  this  department  to  se- 
cure the  advantage  of  its  efficient  methods. 

It  is  also  recommended  that  the  care  of  the  "province"  lands 
be  removed  from  this  department  to  Conservation. 

Safety. 

It  is  proposed  to  transfer  from  this  department  the  following 
incidental  activities:  boiler,  building,  and  elevator  inspections 
to  Labor  and  Industries. 

It  is  recommended  also,  in  Section  VIII,  that  the  fees  of 
certain  remaining  activities  be  increased. 

Secretary  of  State. 

Aside  from  supervision  over  State  elections,  the  functions  of 
this  department  are  largely  of  a  routine  nature.  In  Section  III 
it  is  recommended  that  the  decennial  census  be  abolished,  that 
the  Ballot  Law  Commission  be  attached  to  this  department  in- 
stead of  remaining  a  separate  executive  function,  and  that 
certain  fees  charged  by  this  department  be  increased.  The 
establishment  of  a  central  purchasing  agency,  elsewhere  recom- 
mended, would  remove  from  this  department  the  duty  of  pur- 
chasing paper  for  printing  and  general  use. 

This  department  contains  the  archives  in  which  the  State's 
valuable  papers  and  documents  are  preserved.  The  State  Li- 
brary, now  classed  as  an  executive  division,  also  contains  many 
valuable  State  records.  There  appears  to  be  no  wholly  distinct 
division  between  the  archives  and  the  library,  and  search  is 
sometimes  necessary  in  both  for  a  desired  document.  It  is 
recommended  that  the  State  Library  be  placed  under  the  super- 
vision of  the  Secretary  of  State,  so  that  the  resources  of  both 
may  be  more  conveniently  accessible. 


1922.1  HOUSE  —  No.  800.  55 


Superintendent  of  Buildings. 

This  executive  agency  has  charge  of  the  State  House  build- 
ing, the  assignment  of  space  therein  to  the  various  departments, 
and  the  purchase  and  distribution  of  suppHes  for  the  occupants. 

The  condition  of  certain  pubHc,  but  not  prominent,  parts  of 
the  State  House  are  not  fully  up  to  standard,  due  to  storage  of 
miscellaneous  materials,  which  introduces  an  undesirable  fire 
risk.  No  fire-alarm  boxes  are  to  be  found  in  or  immediately 
accessible  to  the  building.  The  fuel  used  in  the  heating  plant 
is  of  an  unnecessarily  expensive  quality. 

The  Commission  has  elsewhere  in  this  section  recommended 
that  certain  activities  now  housed  in  Boston  office  buildings  be 
brought  into  the  State  House.  This  could  be  accomplished 
without  removing  other  activities  if  a  careful  and  consistent 
assignment  of  space  was  made  to  all  departments. 

Section  I  of  this  report  recommends  the  transfer  of  the  care 
of  the  State  House,  space  assignment  therein,  and  purchasing 
and  storeroom  functions  to  the  Department  of  Administration 
and  Finance. 

While  the  post  office  in  the  State  House  is  not  under  the 
supervision  of  the  Superintendent  of  Buildings,  the  Commission 
takes  this  opportunity  to  point  out  that  the  distribution  of  the 
morning  mail  is  not  made  sufficiently  early  to  facilitate  the 
work  of  the  departments.  The  lost  time  of  clerks  waiting  at 
the  post-office  windows,  and  the  more  important  loss  to  the 
balance  of  the  clerical  and  administrative  organization  in  the 
State  House  from  delay  in  mail  distribution,  involve  a  material 
amount  of  money. 

Supervisor  of  Administration. 
The  duties  of  this  executive  agency  are  to  prepare  budget 
data  for  the  Governor  and  Les^islature,  to  supervise  and 
standardize  salaries,  to  supervise  the  printing  work  of  the  State, 
and  other  incidental  activities.  The  Commission  is  of  the 
opinion  that  there  is  room  for  a  substantial  enlargement  of 
functions  of  this  character,  and  recommends  in  Section  I  a  re- 
organization which  will  accomplish  this  purpose. 


56  STATE  ADMINISTRATION.  [Jan. 

Treasurer. 

The  Treasurer  and  Receiver-General  now  not  only  acts  as  the 
custodian  of  the  State  funds,  but  carries  on  extensive  account- 
ing work  which  logically  belongs  elsewhere.  He  also  assesses 
and  collects  collateral  legacy  taxes,  which  function  should  be 
transferred  to  the  Commissioner  of  Taxation. 

The  disposition  of  the  accounting  work  of  this  department 
(of  which  it  should  be  relieved)  is  discussed  in  the  second  part 
of  this  section. 

Accounting  Methods. 

Because  of  the  fundamental  importance  of  proper  and  ade- 
quate accounting  records  in  the  administration  of  any  business, 
the  Commission  has  made  a  careful  study  of  the  system  now 
used  by  the  Commonwealth  to  record  its  financial  activities. 
This  system  is  an  evolution  from  the  practice  in  the  early  days 
when  the  State's  business  was  comparatively  simple.  It  is 
wholly  inadequate  to  provide  for  the  more  complex  require- 
ments of  the  present  vastly  increased  activities. 

One  of  the  vital  objections  to  the  present  system  is  that  it  is 
based,  in  theory,  upon  cash  receipts  and  expenditures.  In 
practice,  the  cash  basis  is  not  strictly  followed,  particularly  at 
the  end  of  the  fiscal  year,  resulting  in  a  confusing,  unsystematic 
and  misleading  mixture  of  ancient  and  modern  methods. 

One  of  the  fundamental  purposes  of  accounting  records  is  to 
set  forth  the  cost  of  conducting  an  activity  during  any  fiscal 
period  so  that  the  efficiency  of  operations  may  be  clearly  shown 
to  responsible  executives.  This  purpose  is  not  accomplished  by 
a  cash  statement,  as  will  be  seen  by  an  illustration  from  the 
latest  published  reports  of  one  of  the  hospitals.  This  report 
shows  monthly  costs  of  caring  for  patients,  varying  between 
$16.90  and  $46.10  per  patient.  There  was,  of  course,  no  such 
variation  in  actual  cost  of  current  operations,  and  the  figures 
are  wholly  misleading.  Similar  conditions  exist  throughout  the 
entire  accounting  system.  It  is  impossible  to  determine  from 
the  Auditor's  voluminous  reports  the  total  annual  expenditures 
of  the  State  without  an  exhaustive  analysis  of  several  appar- 
ently conflicting  summary  statements. 


1922.]  HOUSE  —  No.  800.  57 

The  distribution  of  accounting  functions  between  different  de- 
partments is  also  wholly  unsystematic.  Certain  records  initiated 
by  the  Treasurer  are  duplicated  by  the  Auditor.  The  Auditor 
also  duplicates  certain  budget  activities  of  the  Supervisor  of 
Administration.  On  the  other  hand,  the  actual  auditing  work 
done  by  the  Auditor  is  superficial  and  incomplete.  Audits  are 
made  at  intervals  of  one  to  three  years,  and  the  time  spent  is 
not  sufficient  to  insure  thorough  work. 

Defects  in  the  present  system  of  accounts  and  audits  will  not 
be  considered  in  further  detail  because  it  is  obvious  that  the 
whole  system  should  be  abandoned  at  the  earliest  possible 
moment,  and  be  replaced  by  a  standard  system  adapted  to 
present  and  future  requirements  and  administered  along  dif- 
ferent organization  lines.  The  fundamentals  of  the  new  system 
which  the  Commission  recommends  will  first  be  considered,  then 
the  organization  necessary  to  administer  it  in  a  most  efficient 
manner. 

System. 

It  is  of  vital  importance  that  administrative  officials  have 
accurate  records  of  the  current  costs  of  carrying  on  their 
activities.  This  requires  a  Statement  of  "expenses"  as  distinct 
from  "expenditures,"  the  former  being  the  commitments  for 
the  period  in  question  for  services  rendered  and  materials  and 
supplies  actually  used,  whether  or  not  paid  for  within  that 
period.  This  is  the  system  now  universally  used  for  accurate 
and  adequate  accounting.  Expense  accounts  should  be  set  up 
under  this  system  in  such  detail  for  different  departments, 
divisions,  and  institutions,  or  other  specific  activities,  as  will 
clearly  show  any  significant  departure  from  normal  or  budgetary 
standards.  In  order  that  statements  of  current  operating  ex- 
penses may  not  be  distorted  by  abnormal  charges,  the  new 
system  should  provide  distinct  accounting  for  extraordinary  re- 
pairs or  replacements  and  expenditures  made  for  additions  to 
property  or  equipment. 

Accompanying  this  form  of  expense  accounting  should  be  a 
similar  set  of  revenue  accounts  based  upon  bills  rendered  rather 
than  cash  collections.  If  any  bills  become  uncollectable,  they 
should  be  an  expense  charge  against  the  collecting  agency. 


58  STATE  ADMINISTRATION.  [Jan. 

A  condensed  cash  account  would  also  be  required,  showing 
only  the  general  sources  of  receipts  and  general  character  of  dis- 
bursements. 

Essential  to  the  functioning  of  the  proposed  system  is  a 
*^ materials  and  supplies"  account,  to  which  would  be  charged, 
when  purchased,  articles  not  wholly  needed  for  current  con- 
sumption. These  articles  would  be  credited  to  the  supply  ac- 
count, and  charged  to  expenses  when  taken  out  for  actual  use. 
Other  necessary  balance  sheet  accounts  would  include  accounts 
payable  and  receivable,  agency  accounts,  sinking  funds,  re- 
serve accounts,  and  miscellaneous  items.  Through  such  ac- 
counts there  should  be  set  up  in  the  annual  report  of  the 
Comptroller  an  accurate  and  carefully  computed  statement 
showing  any  balance  in  the  treasury  which  is  subject  to  appro- 
priation by  the  incoming  Legislature,  or  any  deficiencies  which 
must  be  met  by  appropriation.  It  is  practically  impossible  to 
determine  these  facts  from  the  present  system  of  accounting. 

The  balance  sheet  of  a  business  corporation  would  also  include 
a  property  account,  made  up  of  the  revenue-producing  fixed 
assets,  and  a  corresponding  liability  account  including  outstand- 
ing securities.  Such  items  cannot  be  included  in  the  proposed 
State  accounting  system  at  the  present  time  because  records  of 
the  cost  of  property  acquired  many  years  ago  are  not  available 
readily,  if  at  all. 

It  will  serve  the  practical  purposes  of  the  new  system  if,  in 
the  initial  balance  sheet  which  may  be  set  up,  the  amount  of 
the  item  on  the  debit  side  which  represents  State-owned  prop- 
erty is  an  arbitrary  sum  equal  to  the  amount  of  permanent 
State  indebtedness  outstanding  on  account  of  such  property, 
and  is  accompanied  by  a  notation  showing  that  fact.  Subse- 
quent charges  to  "State-owned  property"  should  be  in  accord- 
ance with  a  standard  system  of  accounts,  and  should  be  charged 
only  upon  written  order  issued  by  the  Commission  of  Adminis- 
tration and  Finance,  upon  a  majority  vote  of  the  full  commis- 
sion, and  all  reductions  on  account  of  depreciation  or  otherwise 
should  be  made  only  after  similar  vote  and  order. 

The  above  provisions  with  respect  to  changes  in  the  property 
item  furnish  a  check,  customary  in  all  modern  practice,  against 
any   improper  charges   or   credits.     It  would   be  desirable   to 


1922.]  HOUSE  —  No.  800.  59 

assemble  in  one  complete  statement,  and  maintain  in  some  con- 
venient form,  an  accurate  inventory  of  all  surviving  State 
property,  such  as  is  now  required  by  law  from  certain  depart- 
ments, with  its  actual  original  cost  and  the  source  of  the  funds 
involved  therein,  whether  from  bond  issues  or  taxation.  This 
would  safeguard  movable  property  against  loss,  and  afford  a 
basis  of  suitable  provisions  for  upkeep  and  replacement  of  all 
depreciable  property.  The  absence  of  such  records,  however, 
will  not  affect  the  preparation  of  necessary  balance  sheets  or  the 
functioning  of  other  features  of  the  proposed  system. 

This  report  does  not  undertake  to  work  out  the  details  of  the 
new  system  of  accounts  which  it  recommends  for  adoption  by 
the  State.  The  designing  of  the  complete  new  system  and  the 
preparation  and  publication  of  a  comprehensive  instruction 
book  relating  thereto  will  require  months  of  labor  and  research. 
It  is  recommended  that  the  new  accounting  officer  herein  pro- 
posed be  appointed  promptly,  and  that  he  be  assigned  the 
initial  duty  of  taking  charge  of  the  design  and  installation  of 
the  new  system.  There  should  be  made  available  to  him  the 
services  of  trained  accountants  now  serving  various  State  de- 
partments, and  he  should  further  be  empowered  to  employ  such 
expert  assistance  as  may  be  necessary  to  insure  the  develop- 
ment of  accounting  standards  which  will  meet,  not  only  present 
needs,  but  also,  with  minor  modifications,  will  take  care  of 
future  developments.  The  Commission  has  had  prepared  for 
its  information  a  comprehensive  report  on  the  present  and  pro- 
posed accounting  systems,  including  suggested  forms  of  new 
standard  accounting  and  other  details  which  may  be  of  interest 
to  the  new  accounting  organization  when  assembled,  A  copy 
of  this  report  will  be  filed  in  the  State  Library. 


Organization. 
The  Commission  is  clearly  of  the  opinion  that  the  Auditor 
(or  any  other  accounting  agency)  should  not  do  both  auditing 
and  accounting.  The  Auditor  should  be  relieved  of  all  account- 
ing duties,  and  should  keep  no  books  or  records  other  than  re- 
ports of  the  auditing  work  of  his  staff.  All  departments  and 
activities  should  be  audited  annually  with  care,  including  the 


60  STATE  ADMINISTRATION.  [Jan. 

Income  Tax  Division,  which  has  never  been  examined  by  the 
Auditor. 

The  new  auditing  staff  should  preferably  have  two  divisions, 
of  receipts  and  disbursements,  respectively.  The  former  divi- 
sion should  contain  men  qualified,  not  only  to  check  actual  re- 
ceipts, but  also  to  study  other  possible  sources  of  revenue.  The 
duties  of  the  latter  division  are  of  a  more  routine  character. 

The  Treasurer  should  be  relieved  of  accounting  duties  other 
than  those  connected  with  the  cash  which  he  handles.  He 
should  retain  the  custody  of  all  trust  funds  now  in  his  posses- 
sion, and  be  primarily  responsible  for  their  wise  investment. 
Because  of  the  large  sums  now  in  the  sinking  and  other  trust 
funds  requiring  investment  and  reinvestment  from  time  to  time, 
the  Treasurer  should  have  available,  for  assistance  in  such 
transactions,  a  group  of  administrative  officials  acquainted  with 
such  matters,  including  the  Commissioner  of  Administration  and 
Finance,  the  Comptroller,  the  Commissioner  of  Corporate  Activi- 
ties, the  Associate  Commissioner  of  Corporations  and  Taxation, 
and  the  Auditor.  The  written  approval  of  at  least  two  of  these 
advisers  should  be  secured  in  each  case  of  investment  or  rein- 
vestment of  substantial  amounts. 

It  is  recommended  that  a  new  bureau  be  created  in  charge  of 
a  Comptroller,  to  handle  the  accounting  work  of  the  State.  He 
should  first  design  and  install  the  new  system,  prescribing  all 
forms  and  books  of  account  to  be  used  by  the  several  depart- 
ments, and  no  other  forms  or  books  should  thereafter  be  used 
without  his  specific  approval.  From  time  to  time  as  may  be 
expedient  he  should  revise  such  forms  or  books,  or  the  account- 
ing system  under  which  they  are  used.  He  should  approve  all 
vouchers,  pay  rolls,  and  other  documents  calling  for  expenditure 
of  State  money,  check  them  against  budget  appropriations  for 
consistency  therewith,  and  forward  them  to  the  Governor  and 
Council  for  the  issue  of  warrants  on  the  Treasurer.  He  should 
be  in  possession  of  all  contracts,  salary  lists,  and  standards,  and 
other  data  pertinent  to  such  functions. 

The  Comptroller  should  keep  all  general  books  of  account, 
and  determine  the  extent  and  character  of  subsidiary  accounts 
kept  by  his  office  and  by  the  several  departments.  He  should 
be  equipped  promptly  to  furnish  all  accounting  statements  re- 


1922.]  HOUSE  —  No.  800.  61 

lating  to  financial  status,  funds,  reserves,  appropriation  control, 
and  cost  of  operation,  not  only  at  the  close  of  the  fiscal  year, 
but  at  all  intermediate  monthly  periods  when  such  information 
is  needed  in  effecting  economies  before  appropriations  have  been 
exhausted,  or  for  other  purposes. 

The  Comptroller's  annual  report  should  contain  in  logical 
sequence  all  essential  data  relating  to  the  financial  history  of 
the  State.  Annual  reports  of  other  departments  and  institu- 
tions may  include  pertinent  financial  data  in  detail,  but  in 
accordance  with  the  standard  system  of  accounts,  and  in  full 
agreement  with  summary  statements  in  the  Comptroller's  annual 
report.  The  Comptroller  should  verify  all  accounting  state- 
ments of  other  departments  before  their  publication. 

The  Budget  Commissioner  should  perform  the  duties  of  this 
character  now  lodged  in  the  Supervisor's  Department,  having 
available  the  records  and  resources  of  the  Comptroller's  office 
and  its  full  co-operation. 

The  relations  of  the  various  officers  and  accounting  agencies, 
herein  considered,  to  each  other  and  to  other  activities  are  set 
forth  in  Section  I  of  this  report,  dealing  with  departmental  re- 
organization. 

SECTION  V. 

Under  this  heading  are  included  suggestions  as  to  — 

Ways  and  means  whereby  comprehensive  plans  may  be  made  in  advance 
concerning  the  needs  of  the  several  departments  for  a  series  of  years.  .  .  . 

Construction  Forecasts. 

The  advantages  of  such  a  program  are  beyond  question. 
Capital  expenditures  of  a  department  or  of  the  State  as  a  whole 
in  any  particular  year  should  be  inffuenced  by  the  extent  of 
necessary  expenditures  in  future  years  and  the  probable  busi- 
ness conditions  in  those  years.  A  considerable  proportion  of 
the  State's  construction  work,  particularly  highways,  can  be 
done  when  conditions  are  favorable,  which  is  generally  during 
periods  of  industrial  depression,  with  low  costs  of  material  and 
plentiful  labor. 

Aside  from  such  considerations,  if  the  State  is  to  adhere  to 
a  pay-as-you-go  policy,   stable  taxes  can  best  be  maintained 


62  STATE  ADMINISTRATION.  [Jan. 

without  bond  issues,  through  careful  study  of  suggested  con- 
struction needs  of  all  departments  for  a  considerable  term  of 
years,  and  adjustment  of  the  totals  from  year  to  year  to  such 
uniformity  as  may  be  desirable.  Furthermore,  a  long-range 
program  of  development  may  disclose  unwise  tendencies  or 
policies  not  clearly  evidenced  in  any  single  annual  budget. 

The  recommendations  of  the  Commission  do  not  include  any 
detailed  studies  of  the  future  needs  of  the  several  departments 
or  of  the  way  in  which  they  should  be  distributed  and  financed, 
but  are  limited  to  a  system  of  forecasts  under  which  each  year 
the  various  departments  responsible  for  any  considerable 
amount  of  physical  property  would  submit  estimates  of  probable 
annual  construction  expenditures  for  a  period  of  not  less  than 
five  years.  For  highways,  water  or  sewer  systems,  and  institu- 
tional activities,  the  period  might  be  considerably  longer,  at 
least  with  respect  to  specific  major  developments. 

The  recommended  forecasts  should  be  submitted  by  the  de- 
partments with  their  annual  budget  estimates,  and  should  be 
subject  to  the  same  consideration  as  the  budget  items  up  to  and 
including  the  ways  and  means  committee.  Each  year  items  in 
prior  forecasts  would  require  some  modification,  in  th^  light  of 
new  developments  and  of  changes  made  in  the  current  part  of 
the  program  by  appropriation  acts. 

In  addition  to  the  usual  budget  classification  by  items,  the 
forecasts  should  embody  a  further  classification  on  the  basis  of 
importance  or  necessity  for  the  time  being  of  the  proposed 
work.  It  is  suggested  that  three  classes  of  construction  items 
be  provided  for  each  year,  to  be  called  "necessary,"  "de- 
sirable," and  "contingent,"  respectively.  The  first  class  would 
include  parts  of  a  fixed,  continuing  program  or  other  unavoid- 
able needs;  the  second  class  would  include  items  advantageously 
provided  for  at  that  time,  but  which  might  be  postponed  or 
possibly  advanced;  the  third  class  would  include  work  de- 
pendent upon  some  other  developments  which  cannot  be  defi- 
nitely predetermined,  such  as  population  or  traffic  increases, 
and  the  results  of  sociological  or  health  researches.  A  "de- 
sirable" piece  of  work  for  a  certain  year  might  be  postponed 
and  become,  in  the  following  year,  a  "necessary"  item  of  the 
then  revised  forecast.    A  "contingent"  item  of  a  certain  future 


1922.]  HOUSE  —  No.  800.  63 

year  might  be  changed  to  a  "necessary"  item  of  another 
year. 

Forecasts  of  this  character  are  in  common  use  in  private  busi- 
ness, and  are  helpful  in  determining  financing  and  construction 
policies.  They  would  be  similarly  helpful  in  State  activities,  in 
spite  of  the  numerous  changes  which  would  doubtless  be  made 
from  year  to  year  in  unmatured  projects. 

For  departments  which  have  no  technical  staffs  for  construc- 
tion activities,  some  assistance  would  be  required  for  forecast 
estimates.  Some  other  State  department,  preferably  Public 
Works  or  Administration  and  Finance,  should  be  equipped  and 
designated  to  furnish  approximate  data  of  this  character.  It  is 
not  probable  that  definite  plans  and  specifications  would  be 
either  practicable  or  desirable  for  other  than  immediately 
necessary  work. 

SECTION  VI. 

Personnel  Matters. 

This  section  deals  with  the  personnel  problems  of  the  several 
departments,  the  number  of  positions,  classifications,  salaries, 
and  other  matters  bearing  upon  efficient  service. 

The  Commission  has  not  undertaken  to  make  a  sufficiently 
detailed  study  of  the  exact  duties  performed  in  the  different 
offices  to  determine  whether  or  not  the  number  and  character 
of  the  employees  therein  are  closely  and  efficiently  adjusted. 
In  some  of  its  general  observations  of  the  workings  of  the  de- 
partments it  has  gained  the  impression  of  an  inactive  and  ex- 
cessive organization.  In  other  cases  very  commendable  activity 
has  been  apparent.  Because  varying  degrees  of  diligence  may 
have  some  relation  to  seasonal  character  of  departmental  work, 
the  Commission  does  not  feel  justified  in  making  specific  com- 
ments based  upon  its  general  observations.  Later  comments  re- 
garding the  underlying  principles  of  the  existing  employment 
system  might  justify  the  inference  that,  if  lack  of  proper  dili- 
gence exists,  it  is  primarily  the  fault  of  the  system  rather  than 
its  direct  administration. 

It  is  common  belief  that  there  is  less  output  per  unit  in  gov- 
ernment service  than  in  private  enterprises.  The  substitution  of 
civil  service  in  place  of  the  spoils  system  has  measurably  de- 


64  STATE  ADMINISTRATION.  [Jan. 

creased  the  difference  in  efficiency,  but  civil  service  has  not  yet 
fulfilled  all  its  possible  functions.  As  usually  organized,  civil 
service  finds  a  man  qualified  for  a  job,  sees  that  he  gets  it,  and 
thereafter  leaves  him  a  fixture,  regardless  of  capacity  for  syste- 
matic promotion  or  possible  better  qualifications  for  an  entirely 
different  occupation.  Under  such  conditions  an  employee  loses 
energy  and  ambition,  or  secures  another  job  in  private  service 
with  opportunities  for  advancement.  In  either  event  the  classi- 
fied job  suffers. 

Civil  service  should  be  expanded  to  keep  continuous  records 
of  its  appointees,  with  their  successful  characteristics,  am- 
bitions, and  weaknesses,  thereby  determining  the  best  line  of 
advancement  for  each.  Advancement  should  be  made  possible 
by  civil  service  certificate  upon  the  employee's  record,  without 
examination  or  regard  for  departmental  boundaries.  Such  a 
follow-up  system  would  go  far  in  bringing  about  better  morale 
and  greater  efficiency  in  government  work.  This  system  is  in 
successful  use  in  private  business,  where  large  sums  are  profitably 
spent  in  personnel  activities.  It  is  recommended  that  the  Civil 
Service  Commission  be  given  appropriations  sufficient  to  expand 
its  service  to  include  such  activities  which  are  authorized  by 
existing  laws. 

Even  with  assurances  of  a  working  organization  of  a  suitable 
character,  the  responsibilities  for  its  efficient  administration 
must  remain  upon  the  heads  of  the  several  departments.  Such 
responsibilities  are  continuous,  and  cannot  be  replaced  by 
occasional  investigations.  Because  continuous  attention  has 
been  lacking  in  some  cases,  the  Commission,  in  the  absence  of 
adequate  studies  of  its  own,  recommends  that  a  careful  investi- 
gation of  the  personnel  resources  and  needs  of  each  department 
be  made  by  its  administrative  head,  with  a  view  to  possible 
rearrangements  and  economies.  It  will  be  found  that  in  a 
number  of  the  departments  the  requirements  for  clerical  service 
vary  to  a  considerable  extent  at  different  periods.  It  is  the 
general  practice  to  employ  a  permanent  clerical  force  to  handle, 
not  only  the  regular  work,  but  a  large  part,  at  least,  of  the 
seasonal  work.  This  necessarily  involves  lack  of  full  employ- 
ment at  times  of  minimum  activity.  The  rush  periods  in  the 
different  departments  are  not  all  at  the  same  time,  and  it  has 


1922.]  HOUSE  —  No.  800.  65 

occurred  to  the  Commission  that  a  clearing  house  for  cleiical 
assistants  might  be  established  from  which  the  various  depart- 
ments would  take  care  of  their  temporary  n^eds.  A  careful 
analysis  of  the  fixed  and  temporary  service  of  the  several  de- 
partments would  show  the  extent  to  which  employees  could  be 
transferred  from  one  department  to  another  without  any  surplus 
in  the  clearing  house,  and  it  would  seem  desirable  to  reduce  the 
permanent  forces  by  at  least  the  amount  which  could  be  taken 
care  of  by  such  transfers.  The  administrative  reorganizations 
recently  made  in  at  least  one  other  State  (Illinois)  have  pro- 
vided for  a  transferable  clerical  force  of  this  character. 

The  results  of  the  studies  here  proposed  should  be  reported  in 
detail  to  the  Governor,  who  might  properly  call  upon  the  De- 
partment of  Administration  and  Finance  to  analyze  the  results, 
make  such  further  recommendations  and  take  such  further 
action  as  the  conditions  might  warrant. 

The  Commission  finds  that  regular  employees  at  the  State 
House  have  a  one-month  vacation  each  year,  and  are  also 
granted,  if  sickness  requires,  an  additional  absence  of  another 
month  with  pay.  The  latter  privilege  is  subject  to  material 
abuse,  particularly  during  inactive  periods.  Such  extended  ab- 
sences with  pay  are  more  liberal  than  could  be  obtained  else- 
where. They  require  a  larger  pay  roll  either  directly  or  through 
the  laxity  which  they  encourage,  and  they  further  lead  to 
similar  tendencies  in  the  various  political  subdivisions  of  the 
State.  The  Commission  is  of  the  opinion  that  vacations  and 
sick  leaves  should  be  adjusted  to  agree  with  standard  business 
practice.  It  holds  the  same  opinion  regarding  daily  hours  of 
service,  which  are  now  slightly  less  than  general  office  standards. 

The  Commission  is  in  accord  with  the  general  method  of 
salary  standardization  now  in  effect  and  administered  by  the 
Supervisor's  office.  It  has,  however,  listened  sympathetically 
to  certain  protests  which  have  been  made  against  too  rigid  and 
comprehensive  applications  of  this  system.  These  protests 
apply  particularly  to  professional  positions,  the  claims  being 
made  that  no  talary-standardizing  agency  can  properly  judge  of 
the  actual  or  relative  qualification  existing  or  required  in  the 
higher  grades  of  professional  service,  and  that  the  officers  who 
are  intimately  acquainted  with  the  incumbents  and  their  work 


66  STATE  ADMINISTRATION.  [Jan. 

are  best  qualified  to  grade  and  fix  their  salaries.  The  Commis- 
sion has  not  been  able  to  formulate  a  plan  to  this  end  which 
would  have  logical,  consistent,  and  necessary  limitations  to  its 
applicability. 

The  Commission  has  not  made  a  careful  study  of  the  question 
of  the  extent  to  which  salaries  may  properly  be  fixed  by  law. 
It  calls  attention,  however,  to  the  fact  that  there  is  now  less 
stability  in  salaries,  as  well  as  wages,  than  in  earlier  years,  and 
that  unnecessary  statutory  limitations  may  prevent  the  employ- 
ment of  a  specially  qualified  person  at  a  particular  time  when 
he  is  needed  and  available. 

Changes  in  Civil  Service  Regulations! 

As  to  the  general  level  of  salaries  for  positions  in  adminis- 
trative departments,  the  Commission  finds  that  in  the  more  re- 
sponsible positions,  at  least,  the  prevailing  compensation  is  less 
than  that  obtainable  in  private  employment  for  similar  func- 
tions. Because  of  this,  and,  further,  because  these  positions  are 
of  uncertain  tenure,  they  do  not  as  a  rule  attract  men  of  the 
caliber  needed  to  fill  them  to  the  best  advantage  to  the  State. 
This  Commission  is  of  the  opinion  that  it  would  be  good 
economy  for  the  State  to  make  the  compensation  of  these 
positions  more  nearly  commensurate  with  the  responsibilities  in- 
volved, to  the  end  that  competent  men  may  be  secured  for  and 
retained  in  the  public  service. 

In  the  classified  service  it  is  perhaps  proper  that  a  somewhat 
lower  scale  of  compensation  should  prevail  than  in  private  em- 
ployment because  of  the  exceptional  assurances  of  continued 
employment  and  the  retirement  pension  plan.  But  here  again 
the  Commission  is  of  the  opinion  that  the  compensation  should 
be  adequate  to  secure  and  hold  employees  of  equal  competence 
to  those  occupying  similar  positions  in  high-grade  private  em- 
ployment, and  then  to  require  from  such  employees  the  same 
full  measure  of  service. 

There  remains  under  this  section  a  further  consideration  of 
some  provisions  of  the  civil  service.  While  Stattf  officials  agree 
that  the  civil  service  appointment  system  is  unquestionably  far 
better  than  the  earlier  employment  methods,  most  of  them  have 
some  complaint  against  its  operations.    The  more  important  of 


1922.]  HOUSE  —  No.  800.  67 

these  complaints,  together  with  criticisms  resulting  from  the 
Commission's  own  studies,  may  be  summarized  as  follows:  — 

1.  Civil  service  lists  do  not  in  some  instances  furnish  satis- 
factory persons,  particularly  for  positions  requiring  special 
training  and  experience,  or  where  particularly  confidential  rela- 
tions are  to  exist.  It  is  apparently  for  this  reason  that  so  many 
exemptions  have  been  provided  by  law. 

2.  In  the  case  of  provisional  appointment  where  no  civil 
service  list  is  available,  the  provisional  appointee  is  required  to 
take  a  competitive  examination  after  six  months  of  service,  and, 
if  not  at  the  head  of  the  list,  cannot  retain  his  position,  although 
from  experience  therein  or  otherwise  he  may  be  most  satis- 
factory. Such  conditions  make  it  difficult  to  induce  satisfactory 
persons  to  accept  provisional  appointments,  and  the  time  re- 
quired to  train  such  appointees  may  be  wasted. 

3.  The  provision  permitting  a  discharged  employee  to  have  a 
hearing  before  the  ofHcial  who  makes  the  discharge,  with  a 
further  appeal  to  the  courts  if  necessary,  does  not  tend  toward 
the  enforcement  of  discipline  with  unruly  employees  or  those 
who  are  not  faithful  and  diligent.  Heads  of  departments 
naturally  dislike  the  publicity  and  annoyance  attendant  upon  a 
trial  in  court,  and  the  employees  are  fully  aware  of  this  fact. 

4.  The  preference  given  to  veterans,  by  which,  after  passing 
an  examination,  they  are  placed  at  the  head  of  the  eligible  list, 
operates  to  some  extent  to  prevent  desirable  applicants  from 
seeking  employment  under  civil  service. 

5.  The  exemptions  from  the  provisions  of  the  civil  service 
law  provided  by  statute  are  illogical  and  inconsistent,  and  have 
resulted  in  some  instances  in  the  placing  of  incompetent  and 
untrained  persons  in  important  positions. 

Because  of  the  obvious  merit  of  most  of  these  criticisms  and 
the  importance  of  the  subject,  the  Commission  has  undertaken 
to  formulate,  and  here  recommends,  a  plan  which  would  result 
in  partial  remedy.  This  plan  is  intended  to  apply  only  to  ad- 
ministrative departments  of  the  State  and  certain  specified 
activities  classed  as  "executive,"  and  does  not  affect  other 
executive  or  legislative  or  judicial  employees  or  employees  of 
counties,  cities,  and  towns.  In  substance  the  plan  is  as  fol- 
lows :  — 


68  STATE  ADMINISTRATION.  [Jan. 

1.  Retain  existing  exemptions  from  the  provisions  of  the 
civil  service  laws  applicable  to  the  following  positions :  — 

(a)  Commissioners  or  otherwise  entitled  heads  of  departments. 
(6)  Associate  and  deputy  commissioners  or  otherwise  entitled  officers 
with  like  duties. 

(c)  Directors  or  otherwise  entitled  heads  of  administrative  divisions. 

(d)  Members  of  quasi-judicial  boards. 

(e)  Members  of  ad-\dsory  boards. 

(/)  Members  of  boards  of  appeal  and  parole. 

(g)  State  constabulary  (now  under  two-year  enlistment  and  special 
regulations). 

2.  Except  for  the  exemptions  above  designated,  abolish  all 
those  affecting  the  administrative  departments  and  affecting  the 
executive  departments  in  charge  of  — 

(a)  Supervisor  of  Administration. 
(h)  Superintendent  of  Buildings. 

(c)  Trustees  of  the  State  Library. 

(d)  Commissioner  of  State  Aid  and  Pensions. 

3.  Waive  the  requirements  of  a  competitive  examination 
(but  retain  other  general  civil  service  regulations)  in  specific 
cases  of  persons  to  be  employed  for  certain  special  purposes  or 
under  certain  special  conditions,  upon  certification  to  the  Civil 
Service  Commission  by  the  Governor,  with  the  advice  and  con- 
sent of  the  Council,  that  such  waiver  is  in  the  public  interest. 

The  character  of  duties  and  the  special  conditions  under 
which  such  certification  might  be  issued*  by  the  Governor  are 
not  subject  to  exact  definition,  and  should  not  be  so  closely 
defined  as  to  create,  in  effect,  a  class  of  positions  free  from  com- 
petitive examination.  On  the  contrary,  each  case  should  be 
considered  on  its  own  merits,  but  in  the  light  of  some  general 
description  of  duties  and  conditions  which  might  justify  an 
application  to  the  Governor  for  a  certification  of  waiver  such 
as  is  contained  in  the  following  schedule :  — 

(a)  Secretaries,  assistants,  or  others  employed  in  confidential  capacities 
(one  exemption  now  allowed  for  each  department). 

(b)  Highly  specialized  or  technical  positions  such  as  expert  or  designing 
engineers,   expert   chemists,   superintendents   of   institutions,    or  other 


1922.]  HOUSE  —  No.  800.  69 

supemsory  positions  requiring  special  technical  or  administrative  quali- 
fications; physicians  and  medical  advisers;  professors,  instructors  and 
teachers  in  agricultural,  normal,  textile,  military,  and  other  educational 
activities. 

(c)  ^Miscellaneous  special  duties  such  as  the  following:  actuarial,  super- 
vision of  pubhc  records,  direction  of  State  census,  supervision  of  accounts, 
boards  of  registration,  registrar  of  motor  vehicles,  Boxing  Commission, 
fire  warden,  inspection  of  fish,  and  supervision  of  loans. 

(d)  Any  position  in  the  classified  service  for  which,  at  the  time  of  a 
required  appointment,  no  civil  service  list  is  available. 

The  procedure  under  which  appointments  of  the  character 
herein  contemplated  would  be  made  is  as  follows:  — 

Application  for  the  appointment,  containing  the  name  of  the 
proposed  appointee,  with  the  recommended  salary,  the  character 
of  the  duties  to  be  performed,  and  a  statement  that  the  ap- 
pointment should  be  made  without  competitive  examination 
for  reasons  such  as  are  set  forth  above  (to  be  given  in  detail), 
would  be  transmitted  to  the  Governor  from  the  head  of  the 
department  in  which  the  appointee  would  be  employed.  The 
Governor  and  Council  would  pass  upon  the  question  of  the 
special  character  of  the  duties  involved  and  the  proposed  salary, 
and  certify  to  the  Civil  Service  Commission  that  a  special  ap- 
pointment without  competitive  examination  was  in  the  public 
interest. 

The  commission  would  thereupon  consider  w^hether  the  pro- 
posed appointee  was  qualified  by  education,  training,  character, 
and  experience  to  perform  the  duties  of  the  position.  If  the 
commission  should  so  certify  within  thirty  days  after  the  name 
of  the  proposed  appointee  was  received,  the  appointment  to  the 
position  would  be  made,  subject  to  all  provisions  of  law  relating 
to  acceptance  of  office,  oath  of  office,  and  filing  of  bonds,  and 
having  all  the  rights  and  privileges  of  persons  holding  office  in 
the  classified  civil  service  of  the  Commonwealth. 

4.  Existing  exemptions  not  above  retained  or  modified,  w^hich 
are  therefore  abolished,  include  the  following:  — 

Employees  in  Treasury  Department. 
Employees  in  Bank  Commissioner's  Department. 
Emploj-ees  of  Superintendent  of  Buildings. 
Laborers. 


70  STATE  ADMINISTRATION.  [Jan. 

Institutional  employees: 
Attendants  and  nurses. 
Janitors  and  matrons. 

Culinary,  laundry,  and  miscellaneous  house  workers. 
Engineers,   firemen,    plumbers,  steam   fitters,  electricians,  and   other 

mechanics. 
Laboratorj^  assistants. 
Farmers  and  gardeners. 
Watchmen. 

Coachmen  and  chauffeurs. 
Miscellaneous  unclassified  labor. 

5.  The  removal  of  civil  service  employees,  other  than  police 
forces  in  the  employ  of  the  State,  whether  appointed  by  regular 
or  non-competitive  examination,  should  be  under  the  following 
conditions  instead  of  those  now  provided  by  law :  — 

A  discharged  employee  should  first  have  the  right  of  a  hear- 
ing before  the  head  of  the  department  in  which  he  is  located. 
If  the  head  of  the  department  sustained  the  removal,  the  em- 
ployee would  have  an  appeal  to  a  special  board  of  review 
(instead  of  the  courts),  this  board  of  review  consisting  of  three 
members,  as  follows :  — 

(a)  The  chairman  of  the  Civil  Service  Commission,  or  an  associate 
commissioner  whom  he  might  delegate  to  sit  in  any  particular  hearing. 

(6)  A  citizen  appointed  by  the  Governor,  with  the  advice  and  consent 
of  the  Council. 

(c)  A  person  nominated  by  the  association  of  State  employees  and 
appointed  by  the  Governor,  with  the  advice  and  consent  of  the  Council. 

The  member  or  members  of  this  board  already  in  the  State 
service  should  receive  no  additional  compensation.  The  com- 
pensation of  the  other  members  or  member  should  be  fixed  by 
the  Governor  and  Council. 

The  decision  of  the  majority  of  this  board  in  any  case  re- 
viewed should  be  final. 

The  board  should  be  required  to  confirm  the  discharge  of  an 
employee  for  any  of  the  following  causes,  or  other  just  causes 
which  it  might  find  to  exist:  abolition  of  position  or  duties; 
dishonesty;  insubordination;  lack  of  diligence  or  attention  to 
duty;  incompetence;  failure  efficiently  to  perform  administra- 
tive duties  or  to  co-operate  in  administrative  policies  or  methods 
of  superior  officers. 


1922.1  HOUSE  —  No.  800.  71 


SECTION  VII. 

Centralized  Purchasing. 

Under  this  section  the  Commission  is  called  upon  to  report 
upon  the  State's  purchasing  methods  and  the  changes  therein 
necessary  to  bring  about  the  greatest  economy,  and  also  to  con- 
sider methods  of  disposing  of  the  products  of  institutions  and 
of  salvage  material. 

There  is  now  no  uniformity  in  purchasing  practice  among  the 
departments,  nor  any  standardization  of  supplies  purchased. 
Several  departments  purchasing  large  quantities  of  commissary 
or  other  supplies  have  well-organized  and  efficient  purchasing 
bureaus.  Other  similar  departments  permit  the  stewards  or 
other  subordinate  agents  of  their  different  institutions  to  buy 
supplies  as  they  see  fit,  usually  locally  and  from  day  to  day. 
It  is  inevitable  that  haphazard  purchasing  involves  much 
higher  costs  than  systematic  purchasing. 

The  Commission  has  made  a  study  of  the  differences  in  re- 
sults under  the  two  methods  with  respect  to  certain  commodities, 
and  is  able  to  present  approximate  estimates  of  annual  saving 
(based  upon  1921  conditions)  if  the  most  efficient  methods  now 
in  use  were  universally  applied.  If  the  system  used  by  the 
Mental  Diseases  Department  were  used  throughout,  the  saving 
in  commissary  supplies  in  the  four  large  departments  conducting 
institutions  would  be  $90,000.  If  coal  for  all  State  activities 
were  purchased  under  best  practice,  the  annual  saving  would 
be  $100,000.  By  purchasing  under  blanket  or  long-term  con- 
tracts when  advantageous,  further  substantial  savings  could  be 
made. 

It  is  not  practicable  to  make  similarly  definite  estimates  of 
saving  from  uniform,  standardized  purchase  of  the  wide  range 
of  other  materials  required  in  the  State's  activities.  That  it 
would  be  a  considerable  amount  is  beyond  question.  In  paper, 
miscellaneous  printed  forms,  and  office  supplies  alone,  the  saving 
would  be  in  excess  of  the  cost  of  all  purchasing. 

In  all  large  private  enterprises  centralized  purchasing  is  al- 
most uniformly  in  effect.  In  the  considerable  number  of  State 
administrative  reorganizations  which  have  become  effective,  or 
been  under  consideration  in  recent  years,  centralized  purchasing 


72  STATE  ADMINISTRATION.  [Jan. 

is  more  uniformly  in  evidence  than  any  other  consolidation 
feature.  Central  purchasing  bureaus  are  operating  successfully 
in  Illinois  and  Washington,  and  have  been  recommended  in  at 
least  thirteen  other  States. 

In  view  of  the  advantages  and  precedents  above  set  forth, 
the  Commission  recommends  that  all  materials  and  supplies 
needed  by  the  various  departments  and  other  activities  of  the 
Commonwealth  (except  military  supplies)  be  purchased  by  or 
under  the  direction  of  a  central  purchasing  bureau,  having  as 
its  head  a  person  of  ability  and  extended  experience  in  such 
matters.  Because  of  the  conspicuous  success  of  certain  existing 
departmental  purchasing  organizations,  it  would  be  logical,  and 
the  Commission  so  recommends,  to  transfer  the  members  of 
these  organizations  who  are  responsible  for  their  successful 
functioning  to  the  proposed  central  bureau.  This  would  insure 
the  application  of  methods  found  effective  in  one  department 
to  all  other  similar  activities  as  well. 

It  is  essential  that  centralized  purchasing  should  not  interfere 
with  the  prompt  delivery  of  commissary  or  other  necessary 
supplies.  The  bureau  should  therefore  be  permitted  to  au- 
thorize a  department  or  institution  to  place  local  orders,  at 
least  for  special  or  unimportant  materials  on  which  centralized 
purchasing  w^ould  show  no  advantage.  Furthermore,  the  bureau 
should  have  authority  to  make  blanket  contracts  for  standard 
supplies,  under  which,  during  a  specified  period,  deliveries  would 
be  made  at  designated  points  under  requisitions  issued  there- 
from direct  to  the  contractor,  subject  to  the  terms,  specifica- 
tions, and  prices  of  the  contract.  This  would  combine  the 
advantages  of  centralized  quantity  purchases  with  local  arrange- 
ments for  delivery.  The  bureau  should  be  provided  with  such 
supply  account  appropriations  (in  addition  to  the  departmental 
supply  accounts)  as  might  be  needed  in  connection  with  blanket 
contracts  or  advance  orders  placed  to  take  advantage  of  favor- 
able market  conditions. 

The  duties  of  the  purchasing  bureau  should  not  cease  with 
the  execution  of  single  or  combined  orders  from  the  depart- 
ments. It  should  see  that  the  real  needs  of  these  departments 
are  met  with  the  smallest  practicable  number  of  different  things. 
To  this  end  an  advisory  standardization  board  should  be  organ- 


1922.]  HOUSE  —  No.  800.  73 

ized,  with  the  purchasing  agent  as  its  head,  to  consider  the 
needs  of  the  various  State  activities,  how  far  they  can  reason- 
ably be  harmonized  and  covered  by  standard  specifications,  and 
what,  if  any,  materials  are  so  lacking  in  importance  or  uni- 
formity as  to  warrant  blanket  authorization  for  their  local  pur- 
chase. The  other  members  of  this  advisory  board  should  be 
representatives  designated  by  the  heads  of  the  several  depart- 
ments most  affected  by  centralized  purchasing.  Their  hearty 
co-operation  with  the  purchasing  bureau  would  result  in  im- 
proved quality  of  materials,  regularity  of  supply,  and  reduction 
in  cost. 

It  does  not  appear  necessary  to  create  a  new  administrative 
department  to  handle  this  new  activity  alone.  On  the  other 
hand,  its  necessary  intimate  contact  with  all  existing  adminis- 
trative departments  makes  it  undesirable  to  attach  it  to  any  of 
them  having  extensive  supply  requirements.  It  is  therefore 
proposed  to  include  it  in  the  new^  Department  of  Administra- 
tion and  Finance,  the  organization  details  of  which  are  given  in 
Section  I.  This  department  will  have  functions  in  connection 
with  printing  and  budget  procedure  which  would  be  aided  by 
the  purchasing  bureau.  All  important  contracts  negotiated  by 
the  purchasing  agent  should  be  approved  by  a  purchasing  board, 
made  up  of  the  purchasing  agent  and  the  commissioner  and 
other  associate  commissioners  of  the  Department  of  Adminis- 
tration and  Finance. 

The  products  of  State  institutions  are  used  largely  to  meet 
State  needs  of  such  materials.  To  that  extent,  at  least,  the 
central  purchasing  bureau  should  see  that  the  quality  is  suitable 
for  such  needs  and  the  prices  reasonable.  The  bureau  should 
also  recommend  new  products  or  services  of  the  institutions 
where  it  would  appear  of  advantage  to  the  departments  as  a 
whole. 

This  bureau  should  also  be  authorized  to  call  upon  all  State 
departments   for   inventories   of    excess,    unsuitable,    waste,    or 

obsolete  supplies  or  materials  in  their  custody,  and  to  require 
the  transfer  of  such  supplies  or  materials  to  other  departments 
where  they  can  be  advantageously  used,  or  to  offer  them  for  sale 
at  opportune  times. 


74  STATE  ADMINISTRATION.  [Jan. 

SECTION  VIII. 

This  section  deals  with  — 

The  advisability  of  taking  further  steps  toward  placing  any  of  the 
activities  of  the  State  on  a  self -supporting  basis,  through  the  charging  of 
fees  or  otherwise. 

The  Commission  looks  upon  the  activities  of  the  State  as  of 
two  general  classes:  (1)  those  which  are  of  general  effect  or 
benefit,  such  as  protection  of  person  and  property,  education, 
maintenance  of  public  works,  etc.;  (2)  those  which  directly 
affect  or  benefit  certain  individuals  or  organizations,  this  class 
including  hospitals,  charities,  registrations,  supervisions,  etc. 

Activities  in  the  first  class  are  almost  universally  supported 
by  general  taxation.  Those  in  the  second  class  have  no  uniform 
method  of  treatment.  In  Massachusetts  the  principle  of  self- 
support  for  special  activities  has  been  endorsed  in  part,  but  its 
application  is  by  no  means  consistent  or  complete.  A  study  of 
the  policies  of  other  States  shows  that  in  general  they  have 
established  self-support  or  support  by  political  subdivisions  to 
a  greater  extent  than  has  this  State. 

Comparative  statistics  for  the  year  1918,  taken  from  the 
latest  United  States  census  report  previously  referred  to,  show 
that  Massachusetts  spent  $2.89  per  capita  for  charities,  hos- 
pitals, and  corrections,  which  is  more  than  any  other  State  in 
the  United  States,  and  more  than  twice  the  average  of  all 
State's,  which  is  $1.28.  The  greatest  difference  lies  in  the  care 
of  the  insane,  for  which  Massachusetts  spent  more  money  than 
any  other  State  except  New  York,  although  it  ranked  sixth  in 
population. 

The  Commission  is  of  the  opinion  that  the  State  should  collect 
more  revenues  from  its  special  activities,  and  that,  so  far  as 
possible,  they  should  be  made  self-supporting.  It  is  obviously 
not  possible  that  this  result  can  be  wholly  accomplished  in  the 
departments  of  Mental  Diseases,  Public  Health,  or  Welfare; 
but  other  departments  do  not  have  similar  limitations.  Fore- 
going sections  of  this  report  have  called  attention  to  certain 
additional  or  increased  fees  or  charges  which  should  be  con- 


1922.]  HOUSE  —  No.  800.  75 

sidered.     The  important  cases,  with  the  Commission's  recom- 
mendations, are  here  assembled,  classified  as  follows:  — 

1.  Registration  fees  and  licenses. 

2.  Fees  for  examinations  and  supervision. 

3.  Charges  for  support  of  inmates  of  institutions. 

4.  Miscellaneous  charges. 

1.    Registkation  Fees. 

The  fees  in  effect  for  registration  of  persons  in  certain  occu- 
pations and  professions  are,  as  a  whole,  nearly  sufficient  to 
cover  the  direct  expenses  of  examination,  but  there  are  some 
inconsistencies  in  the  schedules.  The  fees  for  examination  of 
embalmers  and  pharmacists  are  small  as  compared  with  those 
for  other  occupations  of  similar  qualifications  or  importance. 
Dental  applicants  are  re-examined  free,  whereas  others  pay  an 
additional  charge  lower  than  the  initial  fee.  The  latter  practice 
should  be  uniform.  Fees  for  registration  of  persons  previously 
examined  in  other  States  are  to  some  extent  inconsistent,  that 
for  optometrists  being  excessive.  The  fees  for  examination  of 
electricians  and  plumbers  are  not  in  accord,  the  latter  being  too 
small.  The  same  is  true  of  the  annual  renewal  fees  or  licenses 
in  these  occupations. 

There  is  no  uniformity  among  the  occupations  and  professions 
with  respect  to  such  annual  license  charges.  None  is  required 
from  doctors,  dentists,  pharmacists,  and  veterinaries;  but' 
nurses,  embalmers,  chiropodists,  optometrists,  electricians,  and 
plumbers  are  required  to  make  annual  payments  not  wholly 
consistent  with  each  other,  at  least  if  the  registration  fees  are 
considered.  It  has  been  suggested  that  annual  or  other  periodic 
registration  fees  be  established  for  all  such  professions,  to  serve 
as  a  check  upon  the  continued  practice  of  unsuitable  persons. 

The  fees  now  charged  for  examination  of  engineers  and  fire- 
men are  nominal,  and  do  not  cover  the  cost.  They  should  be 
at  least  double  the  present  amounts,  and  might  properly  be 
classified,  so  that  the  charges  for  certificates  for  the  higher  grades 
would  be  still  greater. 

No  fees  are  charged  for  inspection  of  buildings,  for  which  the 
greater  part  of  an  appropriation  of  approximately  $75,000  is 


76  STATE  ADMINISTRATION.  [Jan. 

annually  expended.  A  schedule  of  fees  has  been  proposed 
covering  buildings,  public  halls,  theaters,  hotels,  and  miscel- 
laneous structures,  which  would  cover  the  cost  of  the  service, 
and  such  a  schedule  should  be  put  into  effect. 

No  fees  are  charged  for  the  licensing  or  inspection  of  buildings 
or  premises  used  for  the  storage  of  explosives  and  inflammables. 
It  is  recommended  that  fees  be  established  for  this  service  to 
cover  fully  its  cost. 

It  is  recommended  that  the  fees  for  notary,  justice  of  peace, 
and  special  commissioners  now  collected  by  the  Secretary  of 
State  be  increased  to  not  less  than  $10,  for  greater  consistency 
with  the  worth  of  these  commissions. 

Fees  for  licensing  drug  stores,  dispensaries,  private  hospitals, 
and  cold-storage  warehouses  are  small;  but  the  revenues  ob- 
tainable therefrom  are  unimportant  except  in  the  case  of  cold- 
storage  warehouses,  which  should  pay  substantially  larger 
amounts  proportional  to  the  volume  of  their  business  and  the 
costs  of  inspections.  It  has  been  suggested  that  there  be  put 
into  effect  a  graduated  schedule  of  charges,  with  a  minimum  of 
$15  per  year  for  500,000  pounds  or  less  of  material  stored  or 
its  equivalent,  and,  after  suitable  intermediate  steps,  a  maxi- 
mum of  $500  per  year  for  100,000,000  pounds  or  more  of  ma- 
terial stored  or  its  equivalent.  Without  careful  analysis,  this 
appears  to  be  a  reasonable  schedule. 

The  Department  of  Public  Safety  now  inspects  steam  boiler 
installations  and  pressure  tanks,  charging  therefor  fees  which 
do  not  cover  the  cost  of  the  service.  It  is  recommended  that 
the  fees  be  increased  to  approximately  double  their  present 
amounts,  in  order  fully  to  cover  the  inspection  costs.  Work  of 
the  same  character  is  also  done  by  private  boiler  inspection  and 
insurance  agencies,  and  the  certificates  of  these  agencies  are 
accepted  by  the  State  as  evidence  of  the  safe  condition  of  the 
installations.  A  large  proportion  of  the  total  boilers  within  the 
State  are  so  inspected.  The  increase  of  State  inspection  fees 
would  automatically  result  in  an  increase  in  privately  inspected 
and  insured  boiler  installations,  and  by  a  progressive  adjustment 
of  examination  fees  the  necessity  of  State  inspection  might  in 
time  wholly  disappear,  to  the  advantage  of  all  parties  con- 
cerned. 


1922.]  HOUSE  —  No.  800.  77 

The  Commission  in  most  cases  has  not  undertaken  to  make 
specific  recommendations  in  connection  with  the  above  miscel- 
laneous matters,  for  the  reasons  that  this  would  involve  an  ex- 
tended study  of  the  costs  and  character  of  the  activities.  It  is 
not  wholly  convinced  that  the  occupations  and  subjects  covered 
or  proposed  to  be  covered  by  the  above-mentioned  fees  and 
licenses  include  all  the  matters  that  should  be  covered,  nor 
that  all  the  matters  which  have  been  covered  are  properly  sub- 
jects for  supervision.  The  subject  is  too  broad  to  be  fully 
covered  in  an  investigation  such  as  the  Commission  has  under- 
taken, but  it  recommends  that  further  careful  consideration  be 
required  at  the  hands  of  the  administrative  oflficials  concerned. 

2.  Fees  for  Examinations  and  Supervision. 
Activities  of  this  character  are  primarily  included  within  the 
Departments  of  Corporations  and  Taxation  and  of  Banking  and 
Insurance.  They  include  examinations  of  banks,  trust  com- 
panies, and  other  banking  institutions;  insurance  companies, 
brokers,  and  agents;  and  other  corporate  activities.  The  fees 
now  charged  are  in  most  cases  admittedly  inadequate,  and 
should  be  increased  to  cover  the  cost  of  the  service  rendered. 
At  least  some  of  the  institutions  affected  are  ready  to  assume 
the  full  cost  of  this  service,  and  have  recommended  that  it  be 
made  more  complete  and  effective  than  has  heretofore  been 
practicable.  The  determination  of  suitable  fees  for  this  service 
is  also  a  matter  for  the  attention  of  the  heads  of  the  depart- 
ments affected,  after  due  consideration  of  the  needs  for  im- 
proved and  more  extended  service.  The  Commission  recom- 
mends that  such  attention  be  required. 

3.    Charges  for  Support  of  Inmates  of  Institutions. 

The  Commission  has  pointed  out  in  Section  IV  that  the 
collections  from  patients  in  mental  disease  and  health  institu- 
tions are  very  small  as  compared  with  the  cost  of  conducting 
the  institutions.  How  to  increase  the  collections  has  been  one 
of  the  problems  of  the  Commission.  The  Commission  is  unani- 
mous in  its  belief  in  the  wisdom  of  the  policy  of  State  control  of 
mental  cases,  and  would  not  favor  any  plan  \yhich  would  inter- 


78  STATE  ADMINISTRATION.  [Jan. 

fere  with  this  policy.  The  Commission  is  likewise  unanimous 
in  its  behef  that  sufficiently  active  effort  has  not  been  made  to 
collect  through  the  machinery  now  provided  by  law. 

A  majority  of  the  Commission  is  of  the  opinion  that  the 
present  machinery  is  inadequate,  and  that,  if  the  cities  and 
towns  could  in  some  way  be  called  upon  to  bear  a  proportion  of 
the  unrecovered  cost  of  caring  for  patients,  the  amount  of  collec- 
tions from  them  and  their  relatives  would  be  increased  more 
than  in  any  other  way. 

To  the  end  that  all  possible  revenues  from  these  sources  may 
be  collected,  the  majority  recommends  that,  with  respect  to  the 
Department  of  Mental  Diseases,  one  third  of  the  unrecovered 
cost  to  the  State  of  supporting  patients  be  assessed  back  upon 
the  cities  and  towns  in  which  those  patients  have  a  settlement. 

This  will  not  increase  local  taxes,  as  there  will  be  a  corre- 
sponding reduction  in  the  State  tax.  It  is  solely  to  secure  the 
benefit  of  having  local  authorities  aid  in  the  collection. 

A  minority  of  the  Commission  is  opposed  to  this  recommen- 
dation, primarily  for  the  reason  that  they  fear  that  any  return 
to  the  system  of  part  payment  by  cities  and  towns  may  result 
in  less  efficient  care  of  the  patients,  and  may  be  detrimental  to 
measures  looking  to  the  prevention  of  further  increase  in  the 
number  of  mentally  defective. 

Incidentally  they  feel  that  the  extra  amount  which  can  thus 
be  collected  is  problematical,  especially  when  it  is  offset  against 
the  cost  that  would  be  entailed  in  determining  the  settlements 
of  the  patients.  - 

The  minority  is  in  hearty  accord  with  the  majority  in  de- 
siring to  see  increased  collections,  but  they  feel  that  no  radical 
deviation  from  the  present  policy,  which  has  proved  successful 
and  has  been  followed  by  thirty-four  other  States,  should  be 
made  except  with  the  certainty  that  the  benefits  will  more  than 
offset  the  disadvantages. 

It  is  further  unanimously  recommended  that  the  total  cost 
of  support  in  these  institutions  at  the  present  time,  including 
general  administrative  costs,  be  fixed  at  $9  per  patient  per 
week.  This  would  permit  relatives  of  patients  who  could  so 
afford  to  pay  the  full  cost  of  service,  and  relieve  them  of  any 
feeling  of  financial  obligation  to  the  State. 


1922.]  HOUSE  —  No.  800.  79 

With  respect  to  patients  in  public  health  sanatoria,  the  Com- 
mission unanimously  recommends  that  a  new  schedule  of  fees 
be  established  to  cover  the  average  future  cost  of  conducting 
the  sanatoria,  estimated  to  be  $12  per  patient  per  week,  and 
that,  if  full  collections  cannot  be  made  from  the  patients  or 
their  relatives,  one  third  of  the  unpaid  balance  in  each  case  be 
assessed  back  upon  the  cities  and  towns  in  which  the  patients 
have  settlement.  This  payment  would  be  in  lieu  of  the  $4  per 
week  now  paid  by  the  cities  and  towns. 

4.    Miscellaneous  Charges. 

Under' this  general  heading  is  included  a  miscellaneous  collec- 
tion of  services  of  specific  rather  than  general  interest  which  are 
not  paid  for  or  for  which  the  charges  are  insufficient  to  cover 
the  cost  of  the  service  rendered.  The  Commission's  recom- 
mendations with  reference  thereto  are  necessarily  not  specific. 

The  Department  of  Public  Utilities  supervises  the  operations 
of  gas  and  electric  utilities,  collecting  from  them  the  cost  of 
such  supervision,  but  makes  no  similar  charges  against  rail- 
roads, electric  railways,  and  other  supervised  utilities.  The 
Commission  sees  no  reason  why  there  should  be  such  discrimi- 
nation in  the  practice  of  the  department,  and  believes  that 
either  all  or  none  of  the  utilities  should  contribute  to  the  main- 
tenance of  the  department.  It  has  been  the  general  policy  of 
Massachusetts  to  assess  the  cost  of  supervision  upon  the  activi- 
ties concerned,  and  the  Commission  is  not  convinced  that  there 
is  any  adequate  reason  for  departure  from  this  practice  in  the 
case  of  public  utilities.  It  therefore  recommends  that  all 
utilities  supervised  by  this  department  contribute  toward  its 
support  under  provisions  similar  to  those  now  in  effect  with  re- 
spect to  gas  and  electric  utilities. 

The  Department  of  Education  conducts  extensive  work  in 
the  field  of  advanced  education.  The  Commission  has  not 
given  careful  consideration  to  the  subject  of  fees  or  tuition  for 
such  service,  and.  makes  no  recommendations  with  respect 
thereto  other  than  to  urge  that,  where  commissary  service  is 
furnished,  its  actual  cost  should  be  determined  and  collected. 
It  appears  that  the  Agricultural  College  makes  numerous 
analyses  of  soils,  fertilizers,  etc.,  and  examinations  of  diseased 


80  STATE  ADMINISTRATION.  [Jan. 

farm  animals.  To  the  extent  that  such  services  are  of  benefit 
to  specific  individuals  it  would  seem  logical  to  make  a  reason-^ 
able  charge  therefor,  and  the  Commission  so  recommends. 

The  fees  now  charged  for  university  extension  courses  and 
for  the  publications  used  therein  are  nominal,  and  might  be  ma- 
terially increased  without  impairing  the  effectiveness  of  this 
work.  The  Commissioner  of  Education  should  be  authorized  to 
make  such  increases  as  are  necessary  to  cover  the  full  cost  of 
the  services  and  material  involved,  including  a  proper  propor- 
tion of  the  general  administrative  costs  of  the  department. 

Nominal  charges  are  now  made  for  the  distribution  of  legis- 
lative bulletins  and  documents.  A  vast  number  of  State  publi- 
cations of  various  kinds  is  distributed  without  charge.  It  would 
seem  proper  to  make  charges  for  State  publications  sufficient  to 
cover  their  cost,  except  to  legislative  members,  other  State 
officials,  libraries  and  other  institutions  and  exchanges,  and 
other  parties  entitled  thereto.  The  Commission  does  not  feel 
qualified  to  make  more  definite  recommendations  regarding  such 
charges,  but  recommends  that  specific  schedules  and  provisions 
for  their  application  be  prepared  and  put  into  effect.  This 
work  should  preferably  be  done  by  the  Department  of  Adminis- 
tration and  Finance,  with  the  advice  and  assistance  of  the  Ad- 
ministrative Cabinet. 

The  Civil  Service  Commission  conducts  without  charge 
examinations  of  applicants  for  State  employment.  It  is  sug- 
gested that  fees  be  charged  for  such  examinations,  to  cover  at 
least  a  part  of  their  cost. 

The  Department  of  Labor  and  Industries  conducts  employ- 
ment offices  through  which  positions  may  be  secured  without 
charge.  The  Commission  thinks  that,  if  a  nominal  charge  for 
this  service  were  made,  its  standing  might  be  improved. 

The  Department  of  Public  Works  collects  license  fees  for  the 
registration  of  motor  vehicles,  the  proceeds  being  used  for  high- 
way maintenance  and  construction.  The  Commission  is  con- 
vinced that  in  the  near  future  a  very  large  increase  in  the 
expenditures  for  such  purposes  will  be  necessary.  The  Depart- 
ment of  Public  Works  estimates  that  the  amount  thus  to  be 
expended  will  average  S15,000,000  per  year  for  the  next  twenty 
years.     The  larger  part  of  this  great  sum,  if  the  estimate  is 


1922.]  HOUSE  —  No.  800.  81 

correct,  should  be  provided  through  taxes  upon  those  who  use 
the  highways,  and  who  thus  make  necessary  this  expenditure. 
This  tax  should  be  as  nearly  as  possible  proportionate  to  the 
use  of  the  roads. 

The  Commission  advises  a  revision  of  the  motor  vehicle 
registration  fees,  in  order  that  they  shall  be  made  more  equitable 
and  proportionate  to  the  wear  and  tear  upon  the  roads.  At 
present  a  Ford  runabout  may  pay  the  same  fees  as  a  seven- 
passenger  limousine.  Special  attention  should  be  given  to  fees 
for  motor  trucks,  and  in  determining  these  fees  some  distinction 
should  be  drawn  between  trucks  which  are  used  as  delivery 
wagons  and  those  which  are  used  as  common  carriers  of  freight 
*or  passengers.  Weight,  loaded  and  unloaded,  speed,  width  and 
kind  of  tires  are  also  elements  to  be  considered  in  determining 
ratings  and  fees.  Other  States  have  laws  governing  these 
matters,  which  show  on  the  whole  a  much  higher  average  of 
fees  than  those  in  Massachusetts. 

In  addition  to  a  revision  of  fees,  the  Commission  has  investi- 
gated the  subject  of  a  tax  upon  gasoline  and  other  fuels  used  in 
propelling  motor  vehicles.  Such  a  tax  has  been  adopted  in 
fourteen  States  of  the  Union,  and  similar  laws  are  contemplated 
in  many  other  States.  In  passing  these  gasoline  tax  laws,  it 
has  been  the  theory  that  the  amount  of  gasoline  used  bears  a 
very  direct  proportion  to  the  use  and  wear  and  tear  upon  the 
roads.  It  is  obvious  that  the  large  car,  in  constant  use,  tears 
up  the  roads  more  than  does  the  small,  light  car,  and  the 
amount  of  fuel  used  in  each  varies  in  proportion  to  use,  size, 
and  weight.  Thus  the  tax  proposed  bears  proportionately  on 
each.  The  man  with  the  small  car,  using  little  gasoline,  and 
perhaps  using  this  car  only  a  small  portion  of  the  year,  would 
pay  a  much  less  tax  than  the  owner  of  the  big  car,  using  it 
continuously. 

Such  a  tax  also  puts  a  burden  upon  the  car  which  is  operated 
but  not  registered  in  this  State,  and  also  relieves  the  Massa- 
chusetts owner  when  out  of  the  State. 

The  Commission  recommends  a  tax  of  two  cents  per  gallon 
upon  gasoline  and  other  motor  vehicle  fuel  brought  into  the 
State  or  manufactured  therein,  to  be  collected  by  the  Tax 
Commissioner  from  the  wholesale  distributors,  who  would  pass 


82  STATE  ADMINISTRATION.  [Jan. 

it  along  to  the  motor  vehicle  owners.  The  distributors  should 
be  compensated  for  their  services  by  retaining  1  per  cent  of  the 
taxes  collected. 

It  is  further  recommended  that  75  per  cent  of  the  amount  of 
this  tax  remaining  after  deducting  the  cost  of  its  collection  and 
administration  be  expended  by  the  Department  of  Public  Works 
upon  the  maintenance  and  construction  of  State  highways,  the 
remaining  2.5  per  cent  to  be  distributed  among  the  cities  and 
towns  of  the  Commonwealth  in  proportion  to  the  State  tax,  to 
be  expended  upon  the  maintenance  and  construction  of  high- 
ways within  their  limits  under  specifications  furnished  or  ap- 
proved by  the  Department  of  Public  Works.  The  local  high- 
ways thus  improved  or  built  would  doubtless  in  many  cases  be  * 
parts  of  through  routes  of  travel,  but  no  such  requirement  is 
provided.  More  specific  details  of  this  proposed  tax  on  motor 
vehicle  fuel  are  contained  in  the  draft  of  a  law  which  is  sub- 
mitted. 

Billboards  along  public  highways  are  now  erected  under  the 
supervision  of  the  Public  Works  Department,  which  collects  fees 
or  excise  taxes  amounting  to  $2  for  each  billboard  erected,  the 
collections  covering  approximately  the  cost  of  the  required 
attention.  The  Commission  recommends  that  such  fees  charged 
for  billboards  be  substantially  increased,  and  that  they  be  pro- 
gressively increased  with  the  size  of  the  board,  the  rate  per 
square  foot  being  greater  for  large  boards  than  for  small  ones. 
The  purpose  of  this  recommendation  is  not  primarily  to  secure 
additional  revenue,  but  to  discourage  the  erection  of  objection- 
able structures  along  the  public  highways. 

The  Commission  is  also  of  the  opinion  that  greater  or  addi- 
tional revenue  might  be  collected  from  properly  regulated  con- 
cessions or  other  private  activities  located  upon  property  owned 
or  administered  by  the  State,  and  recommends  that  the  matter 
be  given  attention  by  those  ofiicials  charged  with  the  care  of 
such  property. 


1922.]  HOUSE  —  No.  800.  83 

CONCLUSION. 

The  Commission  realizes  that  there  is  more  work  to  be  done 
along  the  lines  above  suggested,  and  it  finds  satisfaction  in  the 
belief  that  it  has  laid  a  foundation,  through  an  Administrative 
Cabinet  and  otherwise,  for  the  future  automatic  handling  of 
these  matters. 

The  Commission  is  particularly  gratified  in  being  able  to 
present  a  report  that  in  all  essential  respects  is  unanimous.  Its 
recommendations  are  unanimous,  with  the  one  exception  of  that 
covering  the  charging  back  to  cities  and  towns  of  a  part  of  the 
unrecovered  cost  of  caring  for  settled  mentally  diseased  cases. 
It  is  unanimous  upon  all  other  subjects  herein  discussed,  with 
two  exceptions,  namely,  whether  the  metropolitan  district  police 
should  be  placed  under  the  Department  of  Public  Safety,  and 
whether  the  veteran's  preference  law  as  it  now  exists  is  detri- 
mental to  securing  best  qualified  State  employees. 

The  Commission  desires  to  express  its  appreciation  of  the 
assistance  and  co-operation  freely  extended  to  it  during  its 
inquiries  and  deliberations  by  all  State  departments. 

EDWIN  S.  WEBSTER. 
BERNARD  EARLY. 
GARDNER  W.  PEARSON. 
LEONARD  F.  HARDY. 
CARL  C.  EMERY. 
HARRY  C.  WOODILL.  . 
•       JOSEPH  L.  LARSON. 
EBEN  S.  DRAPER. 
JOHN  MITCHELL. 
CHARLES  F.  WEED. 
MARION  CHURCHILL. 
GEORGE  URIEL  CROCKER, 
ADOLPH  EHRLICH. 

Jan.  4,   1922. 


84  STATE  ADMINISTRATION.  [Jan. 

The  undersigned  members  of  the  Commission  desire  as  indi- 
viduals to  express  their  deep  appreciation  of  the  great  assistance 
rendered  by  the  chairman,  not  only  personally,  but  through  his 
office  organization,  and  to  apprise  the  Legislature  of  this  assist- 
ance. 

Through  the  courtesy  of  Mr.  Webster,  and  without  expense 
to  the  State,  a  corps  of  engineers  and  specialists  from  his  office 
was  placed  at  the  service  of  the  Commission  and  its  subcom- 
mittees early  in  August,  and  has  been  in  constant  attendance 
ever  since. 

These  men,  able  and  impartial,  have  rendered  the  Commission 
invaluable  assistance. 

BERNARD  EARLY. 

GARDNER  W.  PEARSON. 

LEONARD  F.  HARDY. 

CARL  C.  EMERY. 

HARRY  C.  WOODILL. 

JOSEPH  L.  LARSON. 

EBEN  S.  DRAPER. 

JOHN  MITCHELL. 

CHARLES  F.  WEED. 

MARION  CHURCHILL. 

GEORGE  URIEL  CROCKER. 

ADOLPH  EHRLICH. 


1922.]  HOUSE  —  No.  800.  85 


Appendix. 


Draft  of  Bills. 
The  resolve  under  which  this  Commission  has  functioned 
authorized  the  presentation  of  drafts  of  bills;  and  while  the 
preparation  of  such  drafts  is  well  under  way,  the  Commission 
has  been  unable  to  complete  the  same,  and  therefore  expresses 
the  hope  that  the  General  Court  may  make  such  provision  as 
may  be  necessary  to  have  these  drafts  completed  and  duly 
presented. 


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